SHANGHAI, May 10 (SMM) -- Mainstream offers of EMM were between RMB 15,400-15,500/mt today and China's EMM prices continued to fall due to sluggish demand.
The steady decline of LME nickel prices dragged down #200 stainless steel prices, and purchasing interest for EMM from stainless steel mills became lower and lower due to sluggish transactions at stainless steel market. Traders also adopted a wait-and-see attitude towards EMM purchases as they believed that prices will fall in the future. According to a trader from Dainan, current stainless steel inventory level was high, and stainless steel mills remained cautiously towards EMM purchases. From current sluggish situation, EMM prices may have room to fall further.
EMM producers' unwillingness to move EMM prices became strong as costs at EMM producers still hovered at high levels. According to an official from EMM producer in Hunan province, although prices of supplementary material like sulfuric acid lowered by RMB 30-50/mt, ore powder prices in main producing regions were still at high levels. In addition, current ore powder supply was tight, and ore powder pries will not decline along with EMM prices. If domestic EMM prices continued to fall, more and more EMM producers will begin to halt production.
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