EMM Price Remains Stable, Future Change Faces Dilemma [SMM EMM Daily Review]

EMM prices held steady this week, after rising for the previous two weeks:

Supply side, some small and medium-sized EMM plants cut production or halted operations under the environmental protection policy. Although operating rates in major producing regions such as Ningxia and Yunnan remained stable, overall spot cargo availability remained tight. Producers prioritized fulfilling long-term contracts, leaving limited spot new orders available. Additionally, some producers, optimistic about the market outlook, held back from selling to lock in high profits, collectively driving up prices over the past two weeks.

Demand side showed significant divergence: stainless steel demand during the September-October peak season fell short of expectations, providing limited boost to EMM; strong demand from special steel became the core support. EMM producers without long-term contract backing purchased spot cargo at high prices, and overseas markets entered the peak consumption season, driving up FOB prices. These three factors constituted the main demand-side support.

The market is currently caught between rising and falling trends. New tender prices from steel mills varied, offering weak price guidance, and trader quotes appeared somewhat chaotic. In the short term, EMM prices are expected to remain stable.