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1. Chinese EMM industry is in a period of structural adjustment and industrial upgrading. The EMM prices will keep low because of the surplus of production capacity and limited market. In response to this situation, the majority of EMM companies have to turn on and off in 2015 ,which will become the new norm of Chinese EMM industry.

2. The low prices of Chinese EMM will be lasting for a long time for a variety of reasons, which is another new norm of Chinese EMM industry.

3. Chinese EMM industry has experienced 60 years of development. Technology, equipment, and management have been significantly increased. There is a stable market demand of one million.  With the development of 200 series stainless steel and special steel, quality improvement and cost reduction, Chinese EMM market may be gradually expanded.

4. In view of the severe overcapacity of Chinese EMM industry, there is no way to solve this problem in a short time.  However, after years of slump, a number of small and medium enterprises that take certain advantages have shown great competitiveness. There is no doubt that the competition will be more intense than ever in the future, and the number of enterprises will be gradually reduced, but small companies may show their own vitality.

5. As the reform of the national electricity goes deep, the electricity prices in southern provinces that produce EMM, such as Guizhou, Chongqing and Yunnan, will be greatly reduced. Through building local grid, the electricity prices also will be reduced in Guangxi and Hunan. This will significantly improve the competitiveness of the Southern EMM enterprises.

6. Considering the upgrading of technology and equipment, material cost decreasing by 1000 CNY in 2015, the EMM production cost is expected to decrease to 10000CNY/t in the next two years.

• [Editor:liujianwei]