[SMM Analysis] Market Conditions Difficult to Boost, Next Week's Price Trend May Continue to Fluctuate Rangebound

GO Silicon Steel Price Dynamics

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

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

This week, the domestic grain-oriented silicon steel market showed a slight strengthening trend, while overall trading activity remained mediocre. In terms of actual market performance, inquiry activity was limited, with most actual transactions concentrated in small-lot orders, and large-scale procurement was scarce. On the market drivers side, the ferrous metals futures market generally exhibited a volatile but strengthening trend this week. The rise in futures prices for related products such as rebar and hot-rolled coil provided some support to market sentiment in the spot grain-oriented silicon steel market. Additionally, leading enterprise Baowu Group raised its base price for grain-oriented silicon steel by 100 yuan/mt, which further boosted market sentiment.

Supply side, market information indicated that due to multiple factors including environmental protection-driven production restrictions and equipment maintenance plans, some large state-owned steel mills in China had arrangements for production cuts of grain-oriented silicon steel in December. This led to a certain degree of reduction in overall market supply, providing phased support to current grain-oriented silicon steel prices. Demand side performance was relatively weak, with downstream enterprises reporting mediocre orders and persistently weak procurement demand for grain-oriented silicon steel. To control inventory risks, stockpiling willingness was generally low, and procurement behavior was mainly rigid restocking, failing to effectively boost the market.

Overall, spot prices for domestic grain-oriented silicon steel are expected to operate steadily next week, likely maintaining a rangebound fluctuation pattern. The possibility of significant changes in the short term is low, and market trading activity may continue the current mediocre trend.

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