SMM Weekly Forecast on China’s EMM Market -Shanghai Metals Market

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SMM Weekly Forecast on China’s EMM Market

SMM Insight 04:47:07PM Dec 17, 2010 Source:SMM

SHANGHAI, Dec. 17 (SMM) --

Supply:

Although mine operators gradual resumed production by the year end, supply of EMM will still be restricted and production costs of EMM will be stably high due to safety production requirements and weather conditions.

Demand:

Demand from #200 stainless steel mills is still weak, and export market continues to be quiet. From transactions in recent two week it can be seen that, purchases from manganese alloy sector and stainless steel sector were sparse, and only a brief purchasing climax occurred. SMM believes that another purchase climax will occur in the following week from downstream stainless steel mills, large steel mills, ferromanganese alloy sector etc. Since supply doesn’t increase significantly and demand increases slightly, domestic EMM prices may have room to advance slightly. 

Forecast:

SMM believes that domestic EMM prices will rally slightly in the following week, and prices will largely move between RMB 17,800-18,000/mt, and may have difficulty in breaking RMB 18,000/mt given relatively weak demand.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn


SMM Weekly Forecast on China’s EMM Market

SMM Insight 04:47:07PM Dec 17, 2010 Source:SMM

SHANGHAI, Dec. 17 (SMM) --

Supply:

Although mine operators gradual resumed production by the year end, supply of EMM will still be restricted and production costs of EMM will be stably high due to safety production requirements and weather conditions.

Demand:

Demand from #200 stainless steel mills is still weak, and export market continues to be quiet. From transactions in recent two week it can be seen that, purchases from manganese alloy sector and stainless steel sector were sparse, and only a brief purchasing climax occurred. SMM believes that another purchase climax will occur in the following week from downstream stainless steel mills, large steel mills, ferromanganese alloy sector etc. Since supply doesn’t increase significantly and demand increases slightly, domestic EMM prices may have room to advance slightly. 

Forecast:

SMM believes that domestic EMM prices will rally slightly in the following week, and prices will largely move between RMB 17,800-18,000/mt, and may have difficulty in breaking RMB 18,000/mt given relatively weak demand.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn