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Average Production Costs at Main EMM Producers above RMB 14,500/mt
Jun 21,2010 16:04CST
smm insight

SHANGHAI, Jun. 21 (SMM) -- Today, mainstream traded prices of EMM were between RMB 14,600-14,700/mt and producers' willingness to move goods below RMB 14,600/mt was low.

According to SMM survey, prices to factory for 16% manganese carbonate powder (including tax) were between RMB 830-850/mt at EMM producers in main producing regions, and electricity prices were between RMB 0.47-0.62/mt, with Hunan province has the highest electricity prices and Xiushan and Guizhou enjoy the lowest electricity prices. Averagely speaking, mainstream costs at EMM producers were around RMB 14,500/mt and costs at produces with weaker cost control ability were between RMB 14,500-15,000/mt.

According to SMM sources, more and more producers halted production due to the fact that costs were higher than selling prices as well as from environmental crackdown factors, with Hunan province witnessing the most significant production suspension due to environmental crackdowns. According to SMM survey, only 7 or 8 producers in west Hunan province kept normal production. Local producers told that the environmental crackdown which is scheduled to complete at this week delayed by the rain storm in that region, leading to uncertainty of the date to resume production. Considering that current costs are higher than selling prices, local producers told that they shall still halt production for a certain time and adopt a wait-and-see attitude even if there were no environmental crackdown for EMM producers. 

To contact the writer on this report: jianghanmei@smm.cn

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