SHANGHAI, Aug. 19 (SMM) -- Two large EMM producers in Xiushan have resumed production, while power rationing has not eased in Guizhou and Guangxi provinces. Operating rates at EMM producers in Guangxi and Hunan provinces were inadequate due to power rationing impact and tight manganese ore supply. SMM expects domestic EMM prices may stagnant as supply of EMM will not increase significantly. Waning supply, coupled with purchases for EMM from domestic steel mills in late August may send EMM prices slightly higher. SMM expects that China’s mainstream EMM prices may move around RMB 18,800/mt in the following week.
Supply of EMM will be relatively tight due to power rationing impact and limited operating rates at EMM producers in Xiushan.
Purchases from stainless steel mills will be limited, and high-demand period for EMM is from September to October.
Current prices for manganese ore, sulfuric acid, and selenium dioxide were stable, resulting in high production costs at EMM producers.