SHANGHAI, Jul. 22 (SMM) – Local governments in major EMM producing regions have introduced no stimulus measures, except Guangxi. Power tariff cuts in Guangxi have helped reduce production costs at local EMM producers by RMB 400/mt, but EMM prices remain lower than costs. As such, operating rates there remain little changed. Operating rates at other regions are also low. EMM prices have begun to hold level given the low supply. 

 

A RMB 10-20/mt decline in manganese ore prices are also reducing production costs at EMM producers by RMB 150-200/mt. Nevertheless, EMM producers will not step up production given the fact that EMM prices are still lower than production costs. 

 

SMM thus expects EMM prices to remain stable in the coming week.