SHANGHAI, Mar. 18 (SMM) – Domestic EMM prices fell from RMB 13,700-13,900/mt to RMB 13,400-13,600/mt. SMM believed that the price decline was mainly due to sluggish demand oversupply pressure.
SMM believes that EMM prices will not fall further and will stabilize in the following week, as current prices are near production costs at EMM producers. Meanwhile, operating rates at EMM producers will not advance further, which means that oversupply pressure will ease in the following week.
However, possibility of production increase at a few large EMM producers in late March will add new uncertainties to EMM market.