SHANGHAI, Sep. 14 (SMM) -- Mainstream offers of EMM were between RMB 16,600-16,800/mt on September 14th, and mainstream traded prices of EMM were between RMB 16,600-16,700/mt on September 13th.
According to SMM sources, government crackdown on energy conservation and emission reduction is most severe in Guangxi province. Currently, operating rates at EMM producers in Zuocong, Baise region of Guangdong province were only around 34%. Producers on operation may also halt production due to energy conservation and emission reduction tasks. In this context, most EMM producers lifted offers above RMB 16,800/mt due to tight good supply. EMM producers in Hunan province, Guizhou province and Chongqing haven’t encountered such severe crackdown, but EMM producers in these regions expected similar crackdown in the near future, resulting in producers’ unwillingness to move goods.
SMM believes that significant production cut is the major reason behind current EMM price surge. If crackdown on energy conservation and emission reduction eases, EMM price will return to normal level.
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