[SMM Analysis] Demand Side Difficult to Improve, Oriented Silicon Steel Prices May Be in the Doldrums Next Week

Price Dynamics of Grain-Oriented Silicon Steel

Shanghai B23R085 Grade: 11,900-12,100 yuan/mt

Wuhan 23RK085 Grade: 11,400-11,600 yuan/mt

This week, the grain-oriented silicon steel market was in the doldrums, with overall trading activity sluggish. Ferrous metals futures hovered at highs, providing limited support to the spot market.

Demand side, procurement pace slowed in end-use sectors such as transformers and new energy power equipment. Coupled with previous stockpiling by some enterprises, a strong wait-and-see sentiment prevailed, with actual purchases mainly consisting of small-lot restocking, while large-volume transactions were rare. Trader side, the primary focus this week was destocking existing inventory. Some traders slightly lowered quotes for certain grades to accelerate capital turnover and promote transactions. Inventory side, after phased destocking, overall market inventory pressure eased somewhat. However, traders remained cautious about the outlook, expecting weak demand growth and showing reduced enthusiasm for purchasing from steel mills to restock.

Overall, the grain-oriented silicon steel market exhibits a loose supply-demand pattern, with little prospect of substantial improvement in demand and traders maintaining a cautious stance. Spot prices for grain-oriented silicon steel are expected to remain in the doldrums next week, with difficulty stemming the decline.

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