SHANGHAI, May. 4 (SMM) –Mainstream traded prices for EMM in China fell further to RMB 10,800/mt in the week ending April 30. More SMEs have shut down against poor market conditions, while large producers maintained normal production. But these closures offered no support to prices. Some offered as low as less than RMB 10,500/mt. Lower prices did not stoke buying since buyers waited for prices to fall further.
EMM prices are expected to continue falling this week due to oversupply, but the downside space will be limited due to cost support.
Outlook for May: China’s EMM output was estimated at 80,700 mt in April, according to SMM’s survey. The country’s EMM output might fall to 79,400 mt in May, based on statistics of current production cuts and expansions as well as planned production cuts and resumptions. Stainless steel mills, especially SMEs, will continue to cut EMM purchasing in May. The average EMM price in China is expected at RMB 10,800-11,000/mt, and export FOB price is expected at USD 1,800/mt.