SHANGHAI, Oct. 31 (SMM) – In 2017, China’s EMM price changed from highs to lows. The price was mainly between 12,000-13,000 yuan per tonne from January to May 2017, and slid all the way over the period from mid May to late July, down as low as 10,000 yuan per tonne. From August till now, EMM price was mixed with rallies and retreats, and failed to return to the high level seen in the first half of the year, with the high-end only reaching 11,500 yuan per tonne over the period.
One large EMM producer in north China claims nearly a half of nation’s total capacity, and its production and sales strategy exerts a big impact on the whole domestic EMM market.
EMM price, which dipped to a low level in June-August, is recovering now, and this is closely related to adjustment of sales strategies at the leading producer and output change at downstream producers for environmental factor. SMM expects domestic EMM price to keep recovering for the rest of the year along with sales strategies’ adjustment at large producers and stabilizing demand.
In 2018, China’s EMM market will remain in supply surplus, and price is expected to fluctuate between 10,500-11,500 yuan per tonne. It is a traditionally high demand period in March, April, September and October, so price may peak at 12,000 yuan per tonne over the period. Domestic large EMM producers will adjust their production and sales strategies in a flexible way so as to secure stable profits and reduce risks from production restarts at many small producers in south China. The low-end EMM price will be around 10,500 yuan per tonne in 2018.
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