[SMM Analysis] Inventory Pressure Persists, Oriented Silicon Steel Prices Are Expected to Continue Declining

Price Dynamics of Grain-Oriented Silicon Steel

Shanghai B23R085 Grade: 12,000-12,200 yuan/mt

Wuhan 23RK085 Grade: 11,800-12,000 yuan/mt

This week, the grain-oriented silicon steel market in Shanghai was in the doldrums, with the trading atmosphere subsequently declining. Market feedback indicated that ferrous metals futures maintained a fluctuating trend, overall industry confidence remained relatively low, and coupled with Baowu's grain-oriented silicon steel price policy remaining stable without adjustment, market prices lacked upward support. Prices for both state-owned and private grain-oriented silicon steel resources dropped back slightly to varying degrees.

Demand side, performance remained weak, purchase willingness from major end-use industries such as transformers was not strong, orders stayed at low levels, and overall market trading was sluggish. Currently, inventory levels for grain-oriented silicon steel in the Shanghai market remain relatively high. Under inventory pressure, traders showed a strong willingness to sell. To accelerate inventory reduction and facilitate deals, some traders actively lowered their offers to attract customers, leading to an expanded negotiation range in the market.

Overall, a supply-demand imbalance persists in the current grain-oriented silicon steel market, and market confidence has not been effectively boosted. Traders generally maintained a cautious, wait-and-see attitude. It is expected that spot prices for grain-oriented silicon steel in the Shanghai market may maintain a weak and stable trend next week. Against the backdrop of no significant improvement in demand and continued inventory pressure, prices still face the possibility of a pullback.

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

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