SMM Weekly Forecast on China’s EMM Market

SHANGHAI, Dec. 24 (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:

Large amount of stock replenishments from downstream consumers before holiday haven’t happened, and downstream #200 stainless steel mills and manganese alloy producers have already completed their purchases. In this context, demand in late December will be very weak.

Forecast:

SMM believes that domestic EMM prices may face risk to slip in the following week due to waning demand. Mainstream EMM prices will be between RMB 18,000-18,200/mt, and strong support will be available at RMB 180,000/mt. EMM prices may be pushed higher in January 2011 when cash flow is relatively ample at stainless steel mills.

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