Limited Room for China's EMM Prices to Rally Further

SHANGHAI, Aug. 9 (SMM) -- Today, mainstream offers of EMM were between RMB 14,900-15,000/mt. Most EMM producers were reluctant to move goods, while purchasing interest from traders and downstream companies were low.

According to SMM survey, supply of ore powder is tight due to stoppage of mine operation, given that the mine disaster is still not solved completely. Most local EMM producers halt production for a short supply of ore powder, while most EMM producers were reluctant to move goods and kept offers firm for the expectation that supply of EMM will be reduced further and production costs for EMM will be high.

According to SMM sources, purchases from downstream stainless steel mills will not be high given the current sluggish condition, while traders also had no interest in replenishing stocks when prices are high. A trader from Ningbo told that his company will not take the risk to replenish many goods as large stainless steel mills are considering purchase cuts and local small stainless steel companies are still at production halts. 

SMM believes that any room for EMM prices to climb further is limited amid weak demand in the market.

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