SHANGHAI (SMM) – Just as SMM expected, domestic EMM prices averaged around RMB 13,600/mt in March.
Major factor restricting EMM prices from rising was increasing demand against stable market demand. Operating rates at China’s EMM producers are expected to rise further to around 45% in April. Demand from domestic #200 stainless steel mills, however, is still weak. Besides, exports of EMM also remain stable as overseas demand remains unchanged. Therefore, SMM expects that oversupply of EMM will intensify in April, and EMM prices will face risks to fall further. Considering the production cost support, EMM prices will move around RMB 13,200/mt in the following month.