SHANGHAI, Jun.1 (SMM) -- Mainstream offers for EMM were between RMB 14,300-14,400/mt today and domestic EMM prices stagnated.
According to SMM sources, although most EMM producers kept offers firm due to high costs, they still felt obvious that downstream demand was really low since buying is extremely sluggish. An official from an EMM producer in Hunan told that current mainstream costs at EMM producers in Hunan province were around RMB 14,500/mt and current prices were near cost levels for most producers. If electricity prices are lifted up, most producers will have no choice but halt production. However, the steady decline of EMM prices still failed to boost bargain buying, and some producers were willing to move goods at low prices since they were pessimistic towards future prices by virtue of wait-and-see sentiment from downstream consumers.
According SMM sources, downstream steel mills as well as stainless steel mills both planned to halt production for unit maintenance in June and purchases for EMM were limited given the sluggish downstream steel sectors. Meanwhile, traders also purchased extremely limited goods as market trend was not clear.
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