SMM EMM Weekly Price Review and Forecast (Apr. 21-25, 2014)

SHANGHAI, Apr. 21 (SMM) – A few large-size EMM producers in China are fulfilling orders signed under long-term contracts, leaving few goods available for sale in spot market. This allowed them to hike offers to RMB 11,800/mt from RMB 11,600/mt. SMEs also hiked offers against losses, though not as much as large producers. Higher prices depressed buying.   

A few inefficient EMM producers halted production in response to production cuts at stainless steel mills. However, no massive production cuts have been reported at EMM producers. #200 stainless steel demand remains soft. In this context, chances are small that EMM prices will move higher. Other the other hand, recent rise in #200 stainless steel prices and cost support will lend some support to EMM prices. SMM thus expects EMM prices to hover near RMB 11,800/mt this week.