SMM EMM Weekly Price Review and Forecast (Aug. 4-8, 2014)

SHANGHAI, Aug. 4 (SMM) – EMM prices in China changed little early last week, but mainstream traded prices rose to RMB 12,500-12,600/mt later in the week. The price rise was driven by two factors. First, Jiangsu Shagang Group and Wuhan Iron & Steel Group raised EMM tender prices for August delivery by RMB 100/mt and RMB 400/mt, respectively, encouraging EMM producers to raise offers in spot markets. Second, some EMM producers in Hunan’s Huayuan and Luxi closed due to environmental protection inspections, causing supply to drop. However, higher offers depressed buying interest of downstream producers, preventing traded prices from rising sharply.     

 

EMM prices are poised to rise further this coming week due to falling supply in major producing regions.