SMM EMM Weekly Price Review and Forecast (Oct. 21-25, 2013)

SHANGHAI, Oct. 21 (SMM) – 

Review:
Electrolytic manganese metal (EMM) prices in China climbed from RMB 12,500-12,600/mt early last week to RMB 12,700-12,900/mt, driven by tight supply and growing demand. However, most downstream producers began to hold to the sidelines in the second half of the week, preventing EMM prices from rising further.  

Forecast:
Tightness in EMM supply will ease as demand begins to wane, which will act as a brake against the rise in EMM prices. Nevertheless, EMM prices will not drop sharply, either, as producers will hold offers firm against high production costs. SMM thus expects that EMM mainstream traded prices will hold around RMB 12,700/mt this coming week.