SHANGHAI, Aug. 2 (SMM) -- According to SMM sources, operating rates at EMM producers were less than 40% in China. Cargo-holders raised offers to RMB 18,800-18,900/mt due to tight EMM supply, but downstream consumers’ acceptance towards EMM prices’ increase by RMB 500/mt in a single day was low. Purchasers largely adopted a wait-and-see attitude, and transactions were externally quiet.

According to SMM sources, most EMM producers strongly believed that EMM prices would rise in the future due to impact from serious and long-lasting power rationing. However, demand for EMM from downstream stainless steel mills was soft due to sluggish condition in stainless steel mills, electricity restriction and purchaser’ buying for silicomanganese as a substitute for EMM. Most downstream consumers believed that any room for EMM prices to rise further will be limited.