Exclusive SMM Survey of EMM Producers

SHANGHAI, May 2 (SMM) – Operating rates at each EMM producers vary due to different locations and costs. Operating rate at EMM producers in Hunan Province slid below 30% last week, with almost no profit margins under current EMM prices, remained above 60% at those producers in Ningxia Hui Autonomous Region, Hubei Province, and Guizhou provinces. Operating rate in Xiushan County, Chongqing Province maintained above 35%, with around 100,000 mt/yr capacity on line, and above 40% in Guangxi due to CITIC Dameng Mining Industries Ltd and other big enterprises. As such, the average operating rate at major domestic EMM producers stood above 45% last week, with around 85,000 mt/monthly output.

In this context, EMM supply slightly exceeded demand last week, since output at major #200 stainless steel producers remains little changed for May.