[SMM Analysis] Limited Positive Factors, GO Silicon Steel Prices to Continue in the Doldrums Next Week

Price Dynamics of Grain-Oriented Silicon Steel

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

Wuhan 23RK085 Grade: 11,500-11,500 yuan/mt

This week, the domestic grain-oriented silicon steel market overall was in the doldrums, with limited regional divergence and persistently sluggish trading activity. Market feedback indicated that ferrous metals futures retreated after a rapid rise, with HRC futures showing initial strength followed by weakness, leading to a pullback in market sentiment. Coupled with relatively loose supply in the industry, as some manufacturers' newly commissioned production lines normally released output, spot prices faced slight pressure.

Demand side, performance was weak. Downstream transformer and high-end motor enterprises mostly consumed existing inventory, with low new purchase willingness, maintaining only a restocking-as-needed pace. High magnetic induction grain-oriented silicon steel saw slightly better trading than common grades due to its specific application scenarios, but overall trading volume remained low. Traders adopted a cautious stance, squeezed by both costs and demand. Some merchants offered slight discounts to accelerate inventory turnover and recoup funds. Order costs from state-owned steel mills remained relatively firm but provided limited support to the spot market.

Overall, the current supply-demand imbalance for grain-oriented silicon steel has not eased, with demand release falling short of expectations and supply pressure accumulating slightly. Although top-tier enterprises adjusted pricing policies for non-oriented silicon steel, the impact on grain-oriented silicon steel was limited. Next week, domestic grain-oriented silicon steel prices are expected to continue in the doldrums, with some grades having slight downside room, though overall fluctuations are expected to be controllable. Traders will likely focus on actively destocking and controlling inventory.

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