SHANGHAI, Aug. 1 (SMM) -- On Monday, mainstream offers of EMM were in the RMB 18,500-18,600/mt range. Downstream consumers still adopted a wait-and-see attitude, but significant decline in EMM supply in major producing regions will allow EMM prices to advance stably.
According to SMM sources, sluggish condition in downstream stainless steel mills and consumers’ purchase for silicomanganese as a substitute for EMM did not change. However, most EMM producers in Guangxi, Hunan and Guizhou provinces have halted production from energy power rationing impact or from environmental inspection impact, and EMM producer in Xiushan, Chongqing did not resume operation yet, leaving significant decline in supply of EMM in major producing region.
In this context, SMM expects EMM prices will have room to advance slightly from significant decline in EMM supply.