SHAGHAI, Apr. 8 -- Today, mainstream offers of EMM were in the RMB 15,400-15,500/mt range, and EMM prices were temporarily stagnant.
It was reported that producers kept offers firm due to tight supply of ore powder as well as from electricity power rationing. According to an official from Hunan province, supply of ore powder became more and tighter in Huanyuan of Hunan province which resulted in sustainable high ore powder prices as well as lowering ore grade. Meanwhile, tight supply of electricity also negatively affected output of EMM at producers. In summary, higher costs at producers as well as reduced supply of goods made producers keep firm offers.
It was also reported that downstream stainless steel prices rose to certain extend due to support form costs, but any improvement of transactions still take time to warm up. Since operating rates at small and medium sized stainless steel mills are improving, demand of EMM is expected to increase gradually.
In summary, domestic supply of manganese was still tight, but demand of EMM is expected to recover stably. However, downstream stainless steel mills still adopt a wait-and-see attitude, and domestic EMM prices will move around RMB 15,500/mt temporarily.
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