SMM Weekly Forecast on China's EMM Market

SHANGHAI, May 14 (SMM) --

Supply

Market hasn't reported that any producer has halted production due to high cost pressure in Huayuan, Xiushan and other main producing regions, and supply was stable in the EMM market. With regard to costs, tight supply and high prices for ore powder continued to strongly support domestic EMM prices, although the expectation of lower electricity prices triggered panic sentiment in the market.

Demand

Medium and large sized stainless steel mills kept normal production and had no plan to cut production, although downstream stainless steel market was sluggish. In this context, stainless steel mills shall continue to make purchases on an as-needed basis. Offers in the export market slipped slightly, and it still takes time for export market to recover. Prices for imported manganese ore increased, and purchases for EMM from middle and low carbon-ferromanganese producers are expected to increase.

Analysis

Panic selling triggered by expectation of lower power charges will gradually reduce, and demand for EMM from medium and large sized stainless steel mills has already prevented EMM prices from falling significantly. However, EMM prices may still have room to fall further as inventories at EMM producers are high but EMM producers still keep normal production and are reluctant to move goods.

Forecast

It is expected that EMM prices will cease to decline and will be temporarily stable when fall to RMB 14,800, with prices moving in the RMB 14,800-15,200/mt range in the following week.

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

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn