SHANGHAI, Aug. 11 (SMM) -- Mainstream offers of EMM were between RMB 15,200-15,300/mt on Wednesday. Supply of spot EMM was tight due to crackdown on miners. Demand from ferroalloy industry increased, pushing up EMM prices.
According to SMM sources, supply of spot EMM has been reduced sustainably, and operating rates at EMM producers slipped further due to tight raw material supply caused by crackdown at miners. In this context, most EMM producers were reluctant to move goods under the context that supply of good reduced and production costs were high.
According to SMM sources, ferroalloy purchasers previously adopted a wait-and-see attitude for the expectation of lower EMM prices. However, they had no choice but to make purchases at present because they had to delivery goods to steel mills on time. In this context, demand for EMM increased significantly in the short term, and regular purchasing bid from large steel mills will also increase demand for EMM.
SMM believes that domestic EMM prices will have room to climb slightly due to tight supply and increased demand.
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