[SMM Analysis] Trend of Change Unclear, GO Silicon Steel Prices Likely to Remain in the Doldrums Next Week

Price Dynamics of Grain-Oriented Silicon Steel

Shanghai B23R085 Grade: 11,500-11,500 yuan/mt

Wuhan 23RK085 Grade: 11,200-11,200 yuan/mt

This week, the grain-oriented silicon steel market overall trended in the doldrums, with a slow market pace and no wild price swings, presenting a "stable with slight easing, mediocre trading" situation. According to market feedback, HRC futures showed a fluctuating downward trend this week, rising first then falling. Influenced by this, some traders adopted a cautious stance, slightly lowering quotes to promote shipments, but the adjustments were limited. Currently, the overall trading atmosphere is mediocre, downstream end-user procurement pace slowed down, mostly restocking based on demand, while speculative demand remained sluggish. Overall trading volume showed no significant improvement WoW.

The supply side showed a clear divergence, with different types of steel mills performing quite differently. State-owned mills maintained firm offers supported by stable orders and high production costs; demand for high magnetic induction grain-oriented silicon steel was steady, with the market's supply-demand in relative balance and minimal price fluctuations. Private mill offers overall held steady, forming a certain price spread with state-owned mill offers. However, approaching the Chinese New Year holiday, market performance was mediocre, with some merchants reporting generally mediocre shipment performance.

Overall, the current grain-oriented silicon steel market is intertwined with bullish and bearish factors, making it difficult to effectively improve the trading atmosphere. It is expected that next week, grain-oriented silicon steel prices will maintain a rangebound fluctuation trend with limited volatility range. In the short term, it is difficult to form a clear trend of change. The market is likely to continue operating weakly until the Spring Festival holiday, when both supply and demand gradually enter a stagnant state.

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