SHANGHAI, July. 2 (SMM) --
Electricity prices have already released at EMM producers in Guizhou, Guangxi, and Chongqing and average costs at EMM producers were around RMB 14,500/mt, so losses at EMM producers gradually eased to certain extent. EMM output may increase as EMM producers in Hunan who were temporarily halted production due to unclear electricity price may resume production, which will weighing on manganese market that has already in surplus.
#200 stainless steel market was sluggish, and purchases from stainless steel mills will be limited. Regular monthly bid from large steel mills has already come to an end, tax included prices to factory were at RMB 151,000/mt offered by Baosteel, but still failing to boost market. Export market was still quiet, with stagnant prices reported in the market.
Electricity prices were still unsettled in Xiangxi region (west Hunan province) and it still takes time to tell whether EMM producers that had halted production will resume production or not in that region. If producers gradually resume production, prices may have risks to fall below RMB 14,500/mt due to increased supply. In summary, negative factors outweighed positive factors at EMM market, prices may have difficulty in advancing.
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