SMM EMM Weekly Price Review and Forecast (Mar. 24-28, 2014)

SHANGHAI, Mar. 24 (SMM) – In China EMM market, tightening cash and growing supply left suppliers anxious to sell, dragging prices down by RMB 150/mt last week. The low-end EMM ex-works price has fallen to RMB 12,000/mt, but consumption was still sluggish. Traders stayed out of the market against price declines. Stainless steel producers in general were little interested in building up stocks due to cash squeeze and falling stainless steel prices.

Demand from #200 stainless steel mills will remain tepid this week. EMM prices are expected to extend losses given the current supply surplus, but any downside space should be limited.