SHANGHAI, Dec 1 (SMM) – The domestic EMM output in November stood at 91,400 mt, a drop of 4.4% from October and down 23.3% on the year.

The average monthly ex-works price of EMM in November was 42,243 yuan/mt, an increase of 2.58% from the previous month. The average monthly FOB price of EMM was $6,850/mt, an increase of 5.64% from the previous month.

The overall EMM prices fell steadily in November, and the spread between traders’ prices and ex-factory prices of EMM plants gradually narrowed in the second half of the month. The purchases by steel mills were low, and the plants lowered prices. As of November 30, the spot prices fell by 1,250 yuan/mt to around 40,000 yuan/mt, and the market transactions remained sluggish. The market was waiting for the major steel mills to settle the purchase prices.

The market heard that the smelters in Ningxia will conduct staggered production in Q1 2022, and the local smelters may suspend production for technical upgrade. The smelters in Chongqing have removed part of the capacities before December. The total output in Q1 2022 will decline, but whether the EMM prices will stand firm depends on the purchases by steel mills and other downstream sectors.

At the end of the year, the shipping and port operation may be affected by the overseas new COVID-19 variant. Most traders received fewer export orders in November and December, and their purchases were low. The exports in October increased after the previous port congestion eased. The exports may decline in November amid weaker demand.

The EMM prices may fluctuate within a narrow range in the short term, and the market is wait-and-see.