SHANGHAI, Jul. 27 (SMM) – As domestic EMM producers await local governments' subsidies and hope the EMM market could see a turnaround, their average operating rate has not fallen but remains around 44% at present based on SMM survey. In the meanwhile, markets of #200 stainless steel stay sluggish, and major producers report they will conduct unit maintenance. According to SMM sources, owing to sluggish #200 stainless steel markets as well as the fact domestic EMM prices have not stopped falling, a lot of stainless steel producers have slowed EMM purchases for August.
EMM supply still exceeds demand at present, while average production costs for EMM producers have decreased below RMB 13,000/mt driven down by a cut in manganese ore prices. As such, SMM still sees further downside room in China's EMM prices which are likely to trend down to around RMB 12,700/mt in the coming week.