[SMM Analysis] Market Participants Adopt a Cautious Stance, GO Silicon Steel Prices to Remain Stable 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 cold-rolled grain-oriented silicon steel market operated steadily overall, with prices fluctuating rangebound. Market sentiment was predominantly cautious and watchful, and participants across all segments maintained a conservative stance.

In terms of market transactions and circulation, current market activity remained persistently low, with insufficient purchasing enthusiasm from downstream end-users. Influenced by factors such as weak end-user orders and significant cost control pressures, downstream enterprises lacked clear expectations for future price trends. To mitigate operational risks, they strictly controlled stockpiling scale, maintaining only rigid purchases for minimal production needs, which kept trading volume at low levels. The continued weakness in demand further hindered resource flow and transmission. Some producers began to see minor inventory accumulation, and the market maintained a fundamental pattern of strong supply and weak demand.

Traders were particularly cautious. Under the dual pressures of high spot inventory and sluggish transactions, most merchants adopted "accelerating sales and realizing profits" as their core strategy, with limited confidence in a market recovery. On one hand, concerned that persistently weak demand could lead to inventory devaluation, they showed a strong willingness to sell, with some actively offering small price concessions to secure limited orders. On the other hand, nearing year-end, pressure for capital recovery became prominent. Most traders avoided winter stockpiling, wary of high capital occupancy costs and uncertainty about next year's market conditions. They opted only for minimal restocking as needed to maintain normal turnover, avoiding blind stockpiling.

Overall, the current market lacks strong supportive factors such as demand recovery or favorable policies. The cautious sentiment among participants is difficult to reverse. Prices for cold-rolled grain-oriented silicon steel are expected to remain stable next week.

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