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EMM (Electrolytic manganese metal) is one of the raw materials to produce Ssteel, especially 200 series Stainless steel. China ,as the biggest EMM producer and Consumer in the world, it has about 1.16million ton Output and 2.0 million ton capacity in 2012. China export volume about 200,000 tons in 2012 (custom official Records 120,000tons). which it was 65% of the world  trade volume. but actually is was about 90% of the world EMM trade Volume.

The main cost to produce EMM is Power and Mn ore, Hunan,Guizhou,Gaungxi, Ningxia and Chongqin are main areas of China to produce EMM. The power is quite different in these provinces. Currently Guizhou Power is Cheapest and Ningxia is the most potential area to produce EMM in China , one big producer established, with 200,000capacity currently, and another 300,000mt capacity will be finished till June,2013.

EMM capacity is still developing, CITIC Dameng is expanding another 500,000mt this year, and Changyang,another 50000mt will be finished in this year. About 600,000mt additional capacity will be expanded in this year, if it were established on time, the capacity will reach 2.6millon tons in 2013.

On the other hand, the demands from Ssteel is not expanded and it will not be more expanded in coming 10 years. so as the result, EMM will in the surplus of supply and market will be clappsed furhter.

Almost all EMM producers concerns about this, and small producers will face great challenge to close or merge in coming5 years in China.

• [Editor:editor]