[SMM Analysis] Market transactions remain sluggish. The phenomenon of refusing to budge on prices is widespread in the grain-oriented silicon steel market

Price Dynamics of Grain-Oriented Electrical Steel

Shanghai B23R085 grade: 14,400-14,600 yuan/mt

Wuhan 23RK085 grade: 14,200-14,700 yuan/mt

This week, the price of grain-oriented electrical steel in Shanghai remained stable, with low overall market trading activity and average transaction performance. The ferrous metals series futures market exhibited a fluctuating trend this week, and the price fluctuation range of HRC was relatively small, having a negligible impact on the grain-oriented electrical steel market.

In terms of market fundamentals, the supply of certain high-end grades of grain-oriented electrical steel is relatively scarce in the current market, and the liquidity of spot cargo is poor. However, traders have low inventory levels, indicating a strong intention to refuse to budge on prices. Nevertheless, influenced by off-season factors, downstream transformer producers have experienced sluggish growth in orders, adopting a cautious attitude towards purchasing grain-oriented electrical steel. There is a strong sentiment of wait-and-see, and restocking enthusiasm is low, resulting in continued sluggish market transactions, maintaining the weak momentum from last week.

Looking ahead to the subsequent market, given the steel mills' firm determination to hold prices, it is expected that the possibility of a significant price decline in grain-oriented electrical steel in the short term is relatively small. It is anticipated that the price of grain-oriented electrical steel in Shanghai will remain in the doldrums next week.