Domestic EMM Prices Remain Weak

SHANGHAI, May 17 (SMM) – Mainstream offers for domestic EMM prices were between RMB 14,800-14,900/mt Thursday, and market transactions were limited at RMB 14,700/mt. Domestic EMM prices remained weak owing to sluggish demand.

According to SMM sources, major domestic EMM producers are little interested in operation in the face of production losses and sluggish domestic EMM prices, and the average operating rate at Chinese EMM producers has fallen to around 43% at present. Although operating rates at EMM producers in Xiushan, Chongqing have been increasing because of favorable ore and electricity prices, those at producers in Guangxi and Hunan continue to slide. Hence, the average operating rate at Chinese EMM producers has retreated slightly.

On the cost side, manganese ore and electricity prices remain stable this week. 98% of areas in China have experienced volatile sulfuric acid prices. Sulfuric acid prices stay stable in Hunan, but edge down by RMB 30-50/mt in Guangxi. Selenium dioxide prices fell by around RMB 15/kilogram. Therefore, the cost at major EMM producers falls between RMB 25/mt and RMB 100/mt this week.