China’s Domestic EMM Prices May Remain Stable before the Mid-Autumn Festival Holiday

SHANGHAI, Sep. 20 (SMM) -- Mainstream offers of EMM were between RMB 16,800-16,900/mt on September on September 20th. Domestic EMM prices slipped slightly due to wait-and-see sentiment from downstream consumers and some producers’ need to move goods for cash before the Mid-Autumn Festival holiday.

According to SMM sources, government crackdown on energy conservation and emission reduction is most severe in Guangxi province, but didn’t spread to other provinces. In this context, EMM output will not expected to fall further, and upward momentum for domestic EMM prices to climb further will be weak. Downstream consumers, however, were under very difficulty situation due to EMM price surge, and most downstream stainless steel mills adopted a wait-and-see attitude towards high EMM prices. In this context, EMM prices show signs to slip slightly under the context of weak demand and possible unchanged output.

SMM believes that uncertainties from government crackdown on energy conservation and emission reduction as well as environmental crackdown at mine operators still support EMM prices to stay stable, but EMM prices may still face risks to fall slightly.

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