SHANGHAI, Jul. 11 (SMM) – In response to the requirement of the Ministry of Industry and Information Technology (MIIT), there are 15 EMM producers who have to eliminate outdated capacity amounting to 118,000 mt. According to SMM sources, these producers have mostly halted production for some time, and only few maintain operating rates around 50%. Therefore, elimination on obsolete capacity has a limited impact on domestic EMM supply.
SMM also has learnt that China's EMM supply is still in surplus at present as the average operating rate at domestic EMM producers stands around 50%. Given sluggish EMM market, some EMM producers with high production costs in some regions have been forced to suspend production.