China EMM Prices to See No Turnaround (May25-29, 2015)

SHANGHAI, May 25 (SMM) - EMM prices in China are expected to stay at current 10,000-10,200 yuan per tonne in the week starting May 25, Shanghai Metals Market foresees. 

 

On the one hand, falling operating rates at EMM producers will lend support to EMM prices. On the other hand, downstream demand will remain poor, acting as a brake against price rise. 

 

Mainstream traded prices for EMM in China stabilized between 10,000-10,200 yuan per tonne in the week ending May 22. Many SMEs closed in May and some large EMM producers also shut down, allowing EMM prices to stop falling. A few producers raised offers by 100 yuan per tonne to test the waters, but downstream producers refused to buy at higher prices. Some traders stockpiled goods when prices fell to near RMB 10,000/mt, but others waited for prices to fall further. Japan’s offered to buy EMM at $ 1,640 per tonne (CIF, which is below EMM prices in China’s domestic market, leaving traders unwilling to export.