SHANGHAI, Feb. 25 (SMM) -- Last week, China’s EMM prices advanced all the way from RMB 13,400-13,500/mt to RMB 135,000-137,000/mt. A small amount of EMM was traded at RMB 13,800/mt.
Based on SMM survey result, major EMM producers reduced or cut output for unit maintenance during the Chinese New Year holiday, reducing supply of EMM. Meanwhile, production costs of EMM were also firm. According to SMM sources, conditions at downstream #200 stainless producers remained unimproved, but steel producers still purchased EMM normally. Further, the positive impact from cancellation of export tariff still lingers, and China’s exports of EMM continued to grow. Therefore, EMM prices advance amid growing demand and tight supply.
Based on SMM survey result, tight supply of EMM will continue in the following week, and EMM prices are expected to advance further to RMB 13,800-14,000/mt driven by growing demand from downstream producers and increasing export volume.