SHANGHAI, Sep 29 (SMM) - Before the National Day holiday, domestic EMM prices rose slightly. As of September 29, the average price of EMM in China was 15,450 yuan/mt, an increase of 350 yuan/mt from the low in September. The reasons for the higher EMM prices are as follows.
First of all, the EMM supply remained tight as some plants resumed their production slowly and a large one plans to cut its production in October. Secondly, due to the relatively concentrated spot inventory and the repeated pandemic outbreaks in China, the market was worried about the liquidity of the future supply of goods, thus the EMM plants became more bullish on the prices. Finally, before the holiday, the bid prices of steel mills were released one after another, and the prices added 300 yuan/mt on average, boosting the market.
On the whole, the demand for EMM from the special steel and alloy sectors remained still. The spot prices kept rising in recent days due to the pandemic situation, the reduced supply, the relatively centralised spot supply and the release of bid prices before the National Day holiday. It is expected that the operating rates of EMM plants will remain low after the holiday. Short-term EMM prices may remain rangebound with some upward potential because of the centralised inventory of spots even though the raw material prices fell. And the market shall pay attention to the operating rates in the near future.
