No Clear Direction for Domestic EMM Prices

SHANGHAI, May 31 (SMM) – On Monday, mainstream traded prices in domestic EMM markets were between RMB 14,300-14,400/mt, with no significant increases in trading volumes.

Based on SMM sources, production costs at domestic EMM producers are expected to climb higher along with expectations of rising electricity prices on June 1st and high-priced ores. High production costs leave no room for domestic EMM producers to reduce prices. On the other hand, high inventories at downstream stainless steel mills and depressed stainless steel prices indicate no a sign of rising trend in domestic EMM markets.

In addition, downstream stainless steel producers and traders remain on the sidelines, although domestic EMM prices have showed a sigh of stabilizing. One Ningbo-based trader told SMM that positive impact is still available from expectations of higher electricity prices, environmental inspections in the western part of Hunan province, as well as report of unit maintenance plans at stainless steel mills. However, whether or not domestic EMM prices will stabilize remain to be seen.

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