SHANGHAI, May 11 (SMM) -- Today, mainstream offers of EMM were around RMB 15,400/mt, and the lowest traded prices were RMB 15,300/mt yesterday.
According to SMM survey, panic selling recently increased at EMM producers, which is mainly attributed to the expectation of lower production costs. According to an official from EMM producer in Hunan province, electricity prices are to slip in late May, although ore powder price still hovered at high levels. Guizhou province will charge power costs in accordance with high-water standard from May 20th and Hunan provinces will also enter into normal water period, while Guangxi province may enter into high-water season from early June or later. Producers' willingness to move goods increased and they began to move goods due to the expectation of lower costs in the future.
Accordion to SMM sources, some downstream stainless steel mills still adopted a wait-and-see attitude for the expectation of price decline in the future, but some mills began to take this opportunity to replenish stocks at low prices as they believed any room for EMM prices to fall will be limited. A large stainless steel mills from Zhejiang told that more than 80% large stainless steel mills still worked at full capacity at present and any room for EMM prices to fall will be limited given the existing demand as well as support from high ore prices, so moderate purchases could be made at present. However, as current stainless steel industry was in a sluggish situation, producers had no plan to make purchases in a large amount.
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