SHANGHAI, Jun. 1 (SMM) – Market surpluses prevail this week. In this context, SMM anticipates domestic EMM prices still face downside pressures in the coming week, with prices expected to mainly fluctuate between RMB 14,500-14,700/mt.
According to the latest SMM survey, the average operating rate at domestic EMM producers is around 46% for the time being. Operating rates at producers in Guizhou and Chongqing are the highest, around 65%. SMM sees operating rates at producers in Hunan and Guangxi falling to the lowest, while operating rates at producers in Ningxia and Hubei remain unchanged.
On the cost side, manganese ore and electricity prices are unlikely to change, but [sulfuric acid and selenium dioxide prices will probably edge lower. Hence, the cost for domestic EMM producers will fall marginally in the coming week.