[SMM Analysis] Market Activity Remains Low, Post-Holiday Grain-Oriented Silicon Steel Prices to Remain in the Doldrums

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, the cold-rolled grain-oriented silicon steel market operated steadily overall, with offers maintaining last week's levels and no significant fluctuations observed. However, market transactions were moderate, with overall activity relatively low.

Futures side, HRC futures fluctuated downward this week, exerting some downward pressure on the cost side of silicon steel, leading some traders to adopt a cautious wait-and-see stance. Demand side, affected by the approaching Chinese New Year holiday, downstream enterprises gradually entered holiday shutdowns, causing procurement demand to shrink significantly. Market transactions basically stalled in the latter part of the week, with only minimal just-in-time procurement sustaining market activity.

Supply side showed a divergent trend. In February, most private silicon steel producers entered holiday maintenance, leading to a reduction in market supply, with some orders delayed for delivery in February and March. State-owned steel mills maintained relatively stable supply, supporting spot prices with steady shipments and keeping overall market offers firm.

It is important to note that the market will essentially be closed during the holiday period. Steel mill production during the holiday is expected to be concentrated for release after the holiday, potentially putting supply under pressure and affecting the grain-oriented silicon steel market sentiment.

Considering this week's market supply-demand, futures trends, and holiday expectations, cold-rolled grain-oriented silicon steel prices are expected to operate in the doldrums after the holiday. Continuous attention is needed on the pace of downstream resumption of work and supply release post-holiday.

Data Source Statement: Except for publicly available information, other data are derived by SMM through processing based on public information, market communication, and SMM's internal database model, for reference only and do not constitute decision-making advice.

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