SMM EMM Weekly Price Review and Forecast (12-19 Jul. 2013)

SHANGHAI, Jul. 15 (SMM) – Power tariff cuts in Guangxi helped reduce production costs at local EMM producers by RMB 350-400/mt, but production costs are still in excess of EMM prices. SMM’s survey found that operating rates at EMM producers in major producing regions have fallen to 38%, leaving EMM market in a state of basically balanced supply and demand. The mainstream price of EMM is thus projected to hold stable at RMB 11,500/mt in the coming week. Those suffering tighter liquidity may sell at discount, though. Many EMM producers in Hunan have shutdown production, which may drive local government to take action to encourage local producers to resume production.