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Prices at RMB 15,800/mt not Representative in China’s EMM Market
SHANGHAI, Aug. 31 (SMM) -- Mainstream offers of EMM were between RMB 15,900-16,000/mt on August 31. Most smelters still kept offers firm, but some stock builders and producers under cash flow pressure move goods at prices below RMB 15,800/mt.
According to SMM survey, operating rates at EMM producers in Xiangxi region of Hunan province remained at low level due to tight ore powder supply. EMM producers in Xiushan, Chongqing, and Songtao county of Guizhou province are experiencing environmental crackdown, with tight supply expected to reduce further. In this context, most producers kept offers firm due to tight market supply. However, some traders who build stocks previously quote offers between RMB 15,800-15,900/mt for expectation that prices may become weak in the future. Some producers under cash flow pressure also moved goods at a small amount with prices below RMB 15,800/mt
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