SMM Weekly Forecast on China's EMM Market

SHANGHAI, Sept. 16 (SMM) -- EMM producers in Wuling, Xiushan county have already halted production. In addition, eased electricity restriction in Tongren, Guizhou province allows local operating rates to rebound above 70%. Supply of EMM will increase in EMM major producing regions, while demand for EMM will continue to be weak. However, SMM believes that since supply of goods has not increased in a large amount and EMM production costs are still high, mainstream traded prices of EMM will be around RMB 18,800/mt in the following week.

Production Survey at EMM Major Producing Regions: According to SMM sources, only Chongqing Wuling Manganese Industry halted production in Xiushan county, Chongqing city. Xiushan Tycoon Manganese Technology Corporation passed environmental inspection, but the company still needs 10 days for technology innovation. Other EMM producers in Xiushan county need further consolidation, and shall not resume operation in a short term. Electricity restriction has eased to certain extent in Tongren, Guizhou province, so local operating rates rebound to around 70%. According to local power supply bureau, as power shortage has eased to certain extent, electricity restriction will not be implemented. Electricity restriction is still reported in Jingxi county, Guangxi province. According to local power supply bureau, power shortage is still severe, and electricity restriction will be implemented for certain time. Electricity restriction has eased to certain extent in Hunan province, but operating rates have not increased significantly.