SMM Weekly Forecast on China EMM Market

SHANGHAI, Aug. 12 (SMM) -- Large EMM producers in Xiushan gradually resumed operation and power restriction eased to certain extent in Hunan province, while demand for EMM was still weak. SMM expects domestic EMM prices will fall with increasing supply in the following week. However, high production costs and limited increase in operating rates will prevent EMM prices to fall significantly. SMM expects that mainstream traded prices of EMM will be around RMB 18,500/mt in the following week. 

Large producers in Xiushan gradually resumed production, and output of EMM in major producing regions will remain around RMB 65 kt per month.

Demand for EMM was still weak due to power restriction at downstream stainless steel mills, sluggish market condition and soft export demand.

Current prices for manganese ore, sulfuric acid, and selenium dioxide were stable, resulting in high production costs at EMM producers.