Lowest Traded Prices of EMM Reach RMB 15,700/mt Due to Impact from Huayuan Incident

It was reported that around 8-10 EMM producers in Huayuan county have halted production due to impact from dam collapse in Huayuan county. Meanwhile, EMM producers in neighboring regions like Guzhang and Baojing also received environmental inspection due to the incident. According to an officer from an EMM producer, most EMM producers were unwilling to move goods due to stable high costs, and their interest in keep goods tight in hand increased as production were negatively affected due to such incident.

It was also reported that wait-and-see sentiment from downstream producers increased as EMM prices increased by RMB 400/mt only within two days, but some traders still replenished stocks as they believed in bullish EMM price performance in the future. According to a trader form Ningbo, any downward room for EMM producers will be limited given the production situation and costs at EMM producers, and EMM prices will grow to RMB 16,000/mt without any doubt due to the impact of this incident.

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