GO Silicon Steel Price Updates
Shanghai B23R085 grade: 11,500-11,500 yuan/mt
Wuhan 23RK085 grade: 11,200-11,200 yuan/mt
This week, quoted prices in the Shanghai GO silicon steel market remained stable, with no significant fluctuations. Overall trading sentiment was sluggish, and no notable recovery was seen. According to market feedback, actual transaction activity in the market was currently insufficient. Traders and steel mills mainly focused on fulfilling pre-holiday locked-in orders, with very few new deals concluded. Most market participants had no intention of proactively adjusting prices for the time being, and quotations stayed at previous levels.
Downstream, core demand enterprises such as power equipment and transformer producers gradually resumed work and production, but downstream enterprises had already completed phased restocking before the holiday, with inventory at reasonable levels. In the short term, the pace of purchasing demand release was slow, with purchases mainly made on an as-needed basis and buying on dips. Acceptance of price increases was low, and no concentrated procurement was observed. Although long-term demand support remained strong, driven by global power grid upgrades and new energy installations, short-term demand lag was evident and failed to effectively spur a recovery in market transactions.
In terms of supply, steel mill production remained stable, with no obvious moves to cut production or expand output. Post-holiday resources arrived in the market one after another, supply was ample, and there was no pressure from resource shortages for the time being. Meanwhile, GO silicon steel has high process barriers, making supply-side rigidity relatively strong. Coupled with the benchmark pricing role of leading steel mills, downside room for prices was limited.
Overall, supply and demand in the Shanghai GO silicon steel market was in a weak balance. The pattern of temporarily stable quotations and sluggish transactions was unlikely to change in the short term. Prices next week were expected to remain in the doldrums. While the long-term demand fundamentals were improving, in the short term, affected by the slow pace of downstream demand release and pressure from inventory digestion, prices lacked upward momentum and were likely to remain fluctuate rangebound. Continued attention should be paid to downstream production resumption progress and demand release conditions.
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