SHANGHAI, Sep. 10 (SMM) --
Chinese government’s intensified efforts to implement energy conservation and emission reduction policy at high energy consumption companies will result in tight EMM supply in main producing regions, which will lend support for EMM prices.
What can not be ignored is that production at downstream #200 stainless steel mills will also be negatively affected. Newly-released high electricity prices will force some stainless steel mills to halt production, resulting in reduction demand for EMM. It is expected, purchases for EMM from stainless steel mills will be limited. However, purchases from alloy producers will increases, while it still takes time for export market recovery.
Although any room for EMM prices to rise significantly will be limited in the short term due to continuous weak demand from downstream producers, tight EMM supply and increasing purchases for EMM in the term will allow EMM prices hover at high level. It is expected that EMM prices will hover around RMB 16,500/mt in the next week.
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