China's EMM Prices Temporarily Stable around RMB 14,800/mt

SHANGHAI, May 20 -- Mainstream offers of EMM were between RMB 14,800-15,000/mt. Prices were near most producers' production costs, and producers' unwillingness to move goods was strong.

According to SMM price data, China's EMM prices surged in mid-April following a fatal accident at China's Fengyun Manganese Co, but later slipped due to weak demand. However, regular bid from steel mills boosted EMM prices slightly again, but the sluggish stainless steel market dampened upward momentum of EMM prices and prices declined following several day's slight climb. As solid news from downstream market and neighboring market were unavailable, the sluggish buying for EMM lasted for a long time till now.

Will the sluggish buying from stainless steel producer continue to drag down domestic EMM prices? SMM believes that producers' reluctance to move goods is expected to grow as current selling prices are near production costs, EMM prices may remain stable at current level as large steel mills will invite regular bids in the following week. However, it was not optmisitic that EMM prices will rebound from current level. SMM believes, the fact that EMM producers keep normal production but are unwilling to move goods and the fact that demand from #200 stainless steel market hasn't improved are the biggest negative factors for EMM prices.

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

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