Slower Decline Pace of China's EMM Prices

SHANGHAI, May 24 (SMM) -- Mainstream offers of EMM prices were between RMB 14,400-14,600/mt. Producers kept offers firm due to the support from the cost and decline pace of domestic EMM became slow.

According to SMM sources, panic selling sentiment from the market eased slightly to certain extent, and most producers that didn't have cash pressure had relatively strong determination to keep offers firm. According to an official from Hunan province, ore powder prices were still high, and electricity prices may be adjusted in June, so high production costs may continue. However, current prices have already lower than most producers' cost level. In this context, most producers that have no cash pressure may not move goods at low prices temporarily.

According to SMM sources, the sluggish situation at downstream stainless steel industry may not improve in the short term, and most producers still made purchases on an as-needed basis. Most traders only made limited purchases after they had already received orders as they still believed that prices may fall further in the future.

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

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