SHANGHAI, May 11 (SMM) – According to SMM sources, #200 stainless steel markets remained stable recently. Meanwhile, operating rate at domestic EMM producers rallies from 46% to 47%, so EMM output is estimated at 86,000 mt, up slightly, which is due largely to output increase at producers in Xiushan, Chongqing while others remain stable production. SMM learns that operating rate at EMM producers in Guangxi and Hunan is low owing to a loss of 2-3%, while operating rate at producers in Guizhou, especially songtao district there is relatively high due to profits of 2-4%, thanks to low electricity and ore prices. EMM producers in Xiushan, Chongqing have gradually resumed operation following inspections, reporting a profit of 2-4%. Tianxiong Manganese Industry Group, Xiushan Hengwang Manganese Industry Co., Ltd., and some other producers have also restored capacities.

Manganese ore and sulfuric acid prices should remain stable. Selenium dioxide prices have retreated to RMB 650-660/kilogram and therefore have limited downside room. Hence, the production cost of domestic EMM producers will remain stable in the coming week.

SMM holds the view that domestic EMM prices will hover around RMB 14,800/mt in the coming week as demand is not seen to improve, and since supply has yet to increase noticeably.