SHANGHAI, Jul. 7 (SMM) -- Mainstream offers of EMM were between RMB 14,400 and 14,500/mt on June 7th due to the EMM price hikes in Hunan province caused by environmental crackdown. However, most producers reflected that enquiries were sluggish.
According to SMM sources, electricity prices in Hunan province were lifted up by RMB 0.1/kWh, and producers' willingness to halt production was strong due to cost increases. In addition, the to-be-implanted environmental crackdown also propelled production suspension at producers. In this context, producers lifted offers and were unwilling to move goods due to cost increases and supply reduction. Although electricity prices haven't been lifted significantly in other regions, producers in those regions also lifted their offers.
According to SMM sources, downstream stainless steel mills and traders haven't reacted actively towards EMM price hikes temporarily. According to a trader from Dainan, most producers began to lift their offers on Saturday. However, traders mainly adopted a wait-and-see attitude and had no plan to replenish stocks, as the sluggish situation at downstream stainless steel mills made them pessimistic.
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