SMM EMM Weekly Price Review and Forecast (13-14 Jun. 2013)

SHANGHAI, Jun. 9 (SMM) - Operating rates at major EMM producing regions were high at 50%, increasing oversupply pressure. The slight decline in sulfuric acid and selenium dioxide prices pulled production costs at EMM producers down. #200 stainless steel producers were little interested in purchasing EMM against lackluster demand. EMM exports were also sluggish due to summer break overseas. Tepid demand against supply glut and slight fall in production costs will weigh EMM prices down to below RMB 12,500/mt in the coming week. On the other hand, more and more EMM producers in Guizhou and Hunan will scale back production starting next week as prices have fallen below cost levels. This will help ease supply surplus and thus help EMM prices stabilize. SMM expects EMM prices in major producing regions to hold stable after slipping to RMB 12,300-12,500/mt in the coming week.