SHANGHAI, Sep. 17 (SMM) –
According to results from SMM survey, EMM supply didn’t become tight despite of government crackdown on energy conservation and emission reduction. Operating rates at EMM producers were still around 54.5%, and support from possible supply shortage from government crackdown on energy conservation and emission reduction was waning. Upward momentum for EMM prices to climb further amid sluggish demand from stainless steel mills will be weak.
However, SMM believes that EMM prices will not decline significantly. Firstly, expectation for possible EMM supply reduction still exists as it is still not sure whether or not government will intensify crackdown on energy conservation and emission reduction in Guihzou and other regions and whether or not production at mine operators can be resumed after the National Day holiday. Secondly, regular bid for EMM from large mills at the end of September will lend certain support for EMM prices.
In this context, EMM prices will largely remain stable, but may have risk to slip slightly if downstream consumers adopt a wait-and-see attitude.
It is expected that EMM prices will move in the RMB 16,600-17,000/mt in the following week.
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