SMM Weekly Forecast on China EMM Metal Market (May 7-11)

SHANGHAI, May 4 (SMM) – Average profit margin at mainstream EMM producers is small between 4-6% for the time being, but between 2-4% or even less at most producers that maintain production. In this context, most EMM producers choose to hold back goods, so domestic EMM prices are unlikely to trend lower further given the fact demand has yet to fall considerably. Nevertheless, owing to no significant improvement in demand, domestic EMM prices will not increase significantly either. SMM anticipates mainstream EMM prices will hover around RMB 15,000/mt in the coming week.