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Purchases of EMM by downstream stainless steel mills will remain lukewarm given approximately 33% of production cuts at stainless steel mills. Ferroalloy producers also chose to stand on the sidelines. Exports of EMM are expected to increase after the ending of summer vacation.
In general, domestic EMM prices will likely fall slightly in response to weakening demand, but any price declines will be limited supported by limited inventories at EMM producers. SMM predicts EMM prices will fluctuate narrowly around RMB 15,800/mt next week.
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