SHANGHAI, Aug. 30 (SMM) -- Mainstream offers of EMM were in the RMB 19,000-19,100/mt range on August 30th. Downstream purchases have been extremely sluggish, and domestic EMM prices face risks to fall.
According to SMM sources, recent round of EMM price rally is mainly attributed to continuous power rationing, tight market supply and regular demand from steel mills at the month end. However, conditions in downstream #200 stainless steel mills are weakening. Mainstream stainless steel mills all have output cut plan for #200 stainless steel in September, so their purchases for EMM will continue to wane. SMM expects that EMM price outlook will not be optimistic with continuous waning demand, but ongoing power rationing at major EMM producing regions and persistently high prices for manganese ore and high electricity charges will restrict EMM prices from falling significantly.