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[Ferro-alloys.com]Some officer of Hunan Manganese Industry Association disclosed recently that EMM market could not be optimistic this yet. After the technological reformation of the EMM giants were put into production, EMM price was likely to decline further. Many small-sized manufacturers had been eliminated and those in competition were generally medium or large-scaled manufacturers. Their production capacity was rigid, while downstream demand could not rebound in the short term. Under the condition of overcapacity, EMM price could not pick up as supply and demand was imbalanced.

 

Cost was usually the key factor that affected price, but current price was dominated by supply-demand relationship. Large manufacturers were also under great cost pressure and there was not much profit space. They would continue producing to collect cash and survive, even though there was no profit. That was why supply and demand could not be balanced. Temporary slight rise mighty happen, but rapid grow would come out. Rigid cost could not be compressed, so market price could not decline sharply either. In general, Chinese EMM market was irrational and market price could not pick up in the short term.

 

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