SMM

【SMM Analysis：Weak Demand for EMM, Prices Fluctuate Downward.】In August 2024, the domestic spot average price of EMM (main production areas) was 12,572.73 yuan/mt, down 4.47% MoM. The FOB monthly average price of EMM was $1,778.41/mt, down 3.91% MoM. Supply side, most EMM plants maintained stable production schedules, but significant production cuts occurred in Guangxi and Guizhou due to severe losses on production, leading to a decrease in overall EMM production in August. Demand side, although the total production of stainless steel showed an upward trend in August, high EMM inventory led steel mills to prefer lower prices during procurement. In summary, the EMM market remains oversupplied, causing a slight price decline. In early September 2024, the continuous decline in spot EMM prices squeezed the profit margins of EMM plants, resulting in a general tendency to hold prices firm, causing a slight price rebound. However, entering late September, EMM prices are expected to continue fluctuating downward. Supply side, despite slight production cuts by some EMM plants due to production pressure, the overall oversupply situation persists. Demand side, stainless steel mills have low acceptance of high-priced EMM and prefer to purchase other alternative manganese alloy products, leading to low procurement enthusiasm for EMM. In summary, the price outlook for EMM is expected to continue weakening.