[SMM Analysis] Demand for Fund Repatriation Strengthens, GO Silicon Steel Prices May Remain in the Doldrums Next Week

GO Silicon Steel Price Dynamics

Shanghai B23R085 Grade: 11,500-11,500 yuan/mt

Wuhan 23RK085 Grade: 11,200-11,200 yuan/mt

This week, cold-rolled grain-oriented silicon steel prices trended downward, with high-grade grades such as high magnetic induction (Hi-B) experiencing relatively significant declines, while prices for ordinary grades edged lower under pressure, and overall market transactions were weak. Market feedback indicated that the ferrous metals futures center shifted downward this week, leading to insufficient confidence in the GO silicon steel-related market. Most traders lowered their offers to accelerate shipments, and the room for negotiation expanded. Currently, the fundamentals of GO silicon steel show a pattern of strong supply and weak demand. Mainstream steel mills such as Baosteel and Shougang Group maintained relatively stable production pace, resulting in a slight accumulation of pressure on the supply side. Demand side, support remained weak as downstream transformer enterprises gradually digested previous orders. Coupled with copper prices fluctuating at highs, which pushed up production costs, the willingness to restock GO silicon steel remained persistently low, with purchases mainly being small, as-needed batches. Subsequently, as the Chinese New Year approaches, traders' need to recoup funds intensified, making price reductions to promote shipments the mainstream approach, and market selling pressure became apparent. Overall, it is expected that the downward trend in cold-rolled GO silicon steel prices in Shanghai will slow down next week, with the overall market operating in the doldrums.

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