[SMM Weekly Summary] Leading steel mills have been continuously pushing up prices, and next week grain-oriented silicon steel prices will continue to be generally stable with a slight rise.

Grain-Oriented Silicon Steel Price Updates

Shanghai B23R085 Grade: 12,200-12,200 yuan/mt

Wuhan 23RK085 Grade: 11,700-11,700 yuan/mt

This week, spot prices of cold-rolled grain-oriented silicon steel held generally stable with a slight rise, while end-users maintained a steady pace of purchasing as needed. This week, ferrous metals futures swung wildly, limiting overall market price fluctuations. However, Baowu announced its July price policy for grain-oriented silicon steel, raising prices by 300 yuan/mt MoM, which opened up upside room for spot prices. Traders showed strong willingness to hold prices firm, and spot quotations were gradually raised in line with the steel mill’s policy, leading to the near disappearance of low-priced resources in the market. Demand side, the supply-demand pattern for grain-oriented silicon steel remained relatively stable, with rigid demand from downstream end-users in transformers and power equipment persisting. Although large-scale stockpiling was limited, stable rigid-demand purchases supported the price of grain-oriented silicon steel. Supply side, steel mills maintained a steady production pace overall, with orderly supply of mainstream resources, and coupled with the price policy announcement, traders' willingness to raise prices strengthened.

Overall, market inventory pressure was manageable, with most traders holding back from selling and adopting a wait-and-see attitude. The sentiment of holding back from selling was prominent, providing strong support to spot prices. Amid the steel mill’s price increase policy, underpinned by rigid demand from end-users, and amidst strong market sentiment of holding prices firm and raising prices, spot prices of grain-oriented silicon steel are expected to continue holding up well next week.

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