SHANGHAI, Jul. 1 (SMM) – China's EMM output is expected to drop to 82,000 mt in July. Despite falling output, there isn’t going to be a shortfall of EMM. This is because EMM supply was in severe surplus in May and June. As such, EMM prices will remain low. Above 60% of EMM producers are now suffering losses given the current EMM prices. On the other hand, high power costs and manganese ore prices mean any downside space in EMM prices will be limited. Hence, SMM anticipates domestic EMM mainstream traded prices at RMB 11,800-12,300/mt in July and USD 2,000-2,050/mt (FOB) for export prices.
In the coming week, EMM mainstream traded prices will remain low at RMB 12,000/mt. Those who are in the grip of tight liquidity may cut offers to RMB 11,800-11,900/mt to stoke buying interest.