SHANGHAI, Apr. 13 (SMM) –According to SMM survey, the average operating rate at Chinese electrolytic manganese metal (EMM) producers stands at 46% for the time being with output estimated at 83,500 mt.
According to sources, Lianzhong Stainless Steel Corporation will continue to scale back production during April, mainly #200 stainless steel by 26%. Other mainstream #200 stainless steel producers will hold output virtually flat during April from the prior month (SMM will issue purchase volumes of mainstream #200 stainless steel producers on EMM).
SMM believes that EMM demand tends to decrease further during April, which will lead to an increase in market supply (Market surplus is around 8,500 mt at present since whole demand is about 75,000 mt/monthly).
However, limited market surplus and the need to secure production costs will allow limited downside room for domestic EMM prices which will stabilize between RMB 14,600-14,800/mt in the coming week.