EMM Producers Constantly Lift Offers Due to Environmental Crackdown

SHANGHAI, Aug. 18 (SMM) -- Mainstream offers of EMM were between RMB 15,500-15,600/mt on August 18. Some EMM producers have to halt production due to environmental crackdown, so most producers were unwilling to move goods and some lifted offers to RMB 15,800mt for the expectation of possible tight supply.

According to SMM sources, EMM producers in Xiushan region of Chongqing are receiving environmental crackdown just as producers in Hunan province experienced. Two or three EMM producers in Xiushan region have already halted production completely, and other EMM producers shall continue production while receiving environmental crackdown at the same time. The environmental crackdown shall last for a month, but actual impact on EMM production shall depend on the strength of the environmental crackdown.  

EMM producers' willingness to move goods is low and they constantly lifted offers due to tight goods supply in main producing regions, but downstream purchasers still adopted a wait-and-see attitude. According to SMM sources, operating rates at #200 stainless steel mills were not optimistic, and electricity restriction in Zhejiang, Jiangsu and other regions further dragged down operating rates at stainless steel mills further. In this context, demand for EMM producers from stainless steel mills further weakened, and trader also lowered their purchasing plan amid sluggish market.

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