Weakly Review and Forecast on EMM Market

SHANGHAI, Feb. 26 (SMM) --

Weekly Review

This week, trading sentiment was sluggish in the first trading week after the Chinese New Year Holiday, but suppliers gradually kept offers firm as costs at EMM producers climbed slightly in a stable pace and inquiries from downstream stainless steel mills gradually increased. Offers of EMM climbed from RMB 14,600/mt at the early this week to RMB 15,000/mt at the week end.

Supply

Operating rates at China's EMM producers were 74.2%. 74% producers told that they had inventories after the Chinese New Year Holiday and the inventories were manageable. Cost rose stably at EMM producers, which helped support EMM prices.

Demand

Most #200 stainless steel mills still haven't resumed production this week, and there were mainly inquiries but few transactions in the market. Most traders believed that EMM prices would fall after the Chinese New Year Holiday, so there were only few purchases in the market before the Chinese New Year Holiday. The moderate purchasing volumes in the market were mainly from stainless steel mill that plan to make preparation for production resumption at the early March.
 

Weekly Forecast

Supply

Operating rates at EMM producers will remain flat, and supply from producers will be relatively ample. Large traders have already replenished certain amount of stock before the Chinese New Year Holiday, and supply will be ample in the market. Prices of raw material like sulfuric acid and selenium dioxide will continue to grow, and costs of EMM will climb stably, which will support EMM prices.

Demand

#200 stainless steel mills will gradually resume operation in early March, and producers will enter into the market to make purchase. Inquiries in exporting market will increase gradually, and exporting volumes will recover.

Summary

Demand from downstream stainless steel mills will be on upward track, but amply supply of EMM will weigh on climbing of EMM prices. Producers will mainly consume their previous inventions next week, and EMM prices will not have much rising room in the early March, with pries moving in the RMB 15,000-15,500/mt range.
 

To contact the writer on this report: jianghanmei@smm.cn

 
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