[SMM Analysis] Supply and Demand Fail to Achieve Effective Alignment, GO Silicon Steel Prices Expected to Remain Stable Next Week

GO Silicon Steel Price Dynamics

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

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

In the first week after the holiday, the market quotation for cold-rolled grain-oriented silicon steel remained stable, with trading activity continuing the sluggish trend seen before the holiday. The core reason was the delayed pace of downstream production resumptions.

Market side, the silicon steel market was largely closed during the Chinese New Year period. In the first post-holiday week, traders gradually resumed operations, but there were no substantial transactions, with the focus mainly on sorting out and executing pre-holiday orders. Grain-oriented silicon steel resources shipped by steel mills during the holiday continued to arrive at ports. Coupled with the fact that demand had not yet picked up in the first week after the holiday, inventory in the trade segment saw a slight accumulation, with both Hi-B resources and ordinary CGO grain-oriented silicon steel arriving in varying amounts.

Demand side, core end-users of grain-oriented silicon steel, such as transformers and large motors, generally scheduled their post-holiday production resumptions after the Lantern Festival. In the first week after the holiday, only a small number of enterprises arranged for on-duty staff, with no substantive procurement plans yet. Market sentiment was dominated by a wait-and-see approach. Downstream enterprises had low winter stockpiling volumes and, while having an intention to restock at lower prices, showed limited acceptance of higher-priced resources, making purchasing decisions more cautious.

Overall, the current grain-oriented silicon steel market is characterized by a pattern of "stable prices, sluggish transactions, and rising inventory," with supply and demand yet to achieve effective alignment. Cold-rolled grain-oriented silicon steel prices are expected to remain stable next week. In the short term, close attention should be paid to the progress of downstream end-user production resumptions and the actual release of procurement after the Lantern Festival.

Data Source Statement: Except for publicly available information, other data are derived by SMM through processing based on public information, market communication, and SMM's internal database model, and are for reference only, not constituting decision-making advice.

Note: This article is an original work of this official account. For requirements such as reprinting, obtaining reprint permission, or cooperation, please contact us. Without permission, it shall not be reprinted, modified, used, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to any third party in any other form, nor shall any third party be permitted to use it. Otherwise, once discovered, SMM will pursue legal action against the infringing party, including but not limited to claiming contractual breach liability, demanding restitution of unjust enrichment, and compensation for direct and indirect economic losses.