SMM Weekly Forecast on China's EMM Market

SHANGHAI, May 28 (SMM) --

Supply

As EMM prices continued to slip, more and more producers will halt production due to cost pressure. Prices of ore powder which is a major raw material for EMM production slipped slightly. However, more producers will chose to halt production if electricity prices are lifted by RMB 0.06-0.1/kWh.

Demand

Dids for EMM from steel mills have already come to an end, and both prices and purchasing volumes from steel mills were lower than expected, which failed to boost market sentiment. Stainless steel industry was sluggish, and an increasing number of producers will halt production for overhaul. In this context, purchasing volumes from stainless steel mills will be limited. As offers constantly lowered in the exporting market, market players didn’t pin their hopes on the exporting market any more. However, some domestic bargain hunters began to replenish stocks at low prices as they believed that any room for EMM prices to fall further will be limited.

Analysis

As there was no solid news regarding to EMM demand, domestic EMM prices may not climb, but producers' willingness to move goods was extremely low as current EMM prices were already extremely low. With more and more producers beginning to halt production, domestic EMM prices may cease to decline due to reduced supply.

Forecast

It is expected that transactions of EMM will continue to be sluggish in the following week, and prices will move between RMB 14,000-14,500/mt.

To contact the writer on this report: jianghanmei@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