SMM Survey of EMM Producer Costs

SHANGHAI, May 2 (SMM) – With regard to costs, SMM's recent survey of EMM producers in Hunan, Guangxi, Chongqing, and Guizhou revealed the following:

A very small number of producers in Hunan reported 1-2% profit margins over the past week given the existing EMM prices, in the face of high electricity prices and no advantageous ore prices, while most of producers reported 2-3% or even more losses.

EMM producers in Songtao County, Guizhou and Qiushan County in Chongqing enjoy most advantages in costs owing to their low electricity prices and ore prices. SMM estimates their profit margins may stand between 2-4% last week.

An extremely small number of EMM producers in Guangxi can stay in operation last week, for either preferential ore prices or electricity prices, with CITIC Dameng Mining Industries Ltd and other big enterprises having better controls over costs. Hongxin Group in Hubei can also control its costs on account of both low ore and electricity prices.

Ningxia Tianyuan Manganese Co., Ltd. reported considerable profit margins last week owing to its relatively low ore, electricity, as well as sulfuric acid prices.