[SMM Analysis] Weak Demand Coupled with Inventory Pressure Leaves Room for Price Reductions in Certain Grades of Oriented Silicon Steel Next Week

Price Dynamics of Grain-Oriented Silicon Steel

Shanghai B23R085 Grade: 12,500-12,700 yuan/mt

Wuhan 23RK085 Grade: 12,400-12,600 yuan/mt

This week, the grain-oriented silicon steel market was in the doldrums, with overall transaction activity showing mediocre performance. Although ferrous metals futures fluctuated upward this week, market confidence in grain-oriented silicon steel remained weak, with prices for some grades experiencing slight declines and a relatively clear willingness to adjust prices.

Market feedback indicates that current demand for grain-oriented silicon steel fell short of expectations. Key downstream industries, such as power transformers, slowed their procurement pace, mainly making just-in-time procurement, with limited release of bulk orders. On the supply side, leading steel mills maintained steady capacity release, but previous inventory had not been fully digested, leaving ample circulating resources in the market. Traders faced obstacles in sales pace, and to accelerate destocking and promote transactions, most traders offered certain room for negotiation on firm orders, flexibly adjusting their quotes.

Overall, merchants generally adopted a cautious wait-and-see sentiment toward the market outlook. With weak demand and inventory pressure combined, expectations for future trends remained conservative. Spot prices for grain-oriented silicon steel are expected to remain in the doldrums next week, with some grades still having room for negotiation.

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