[SMM Weekly Wrap] Next Week, the Grain-Oriented Silicon Steel Market Will Be in the Doldrums, with Localized Price Reduction Potential.

GO Silicon Steel Price Dynamics

Shanghai B23R085 grade: 12,200-12,200 yuan/mt

Wuhan 23RK085 grade: 11,600-11,600 yuan/mt

This week, China's domestic grain-oriented silicon steel market showed overall regional divergence. Shanghai spot prices remained stable, while Wuhan market quotes weakened and declined. Steel mills held a strong intention to hold prices firm, raising the base price for GO silicon steel by 50 yuan/mt in August, with no significant change in ex-works policies. The supply-demand situation stayed generally stable. Steel mill production pace was steady, resource supply was orderly, and market circulation inventory remained within a reasonable range, though regional inventory digestion speed varied. Downstream end-users such as transformer enterprises were mainly purchasing as needed and making just-in-time procurement. The overall transaction pace was moderate, and market trading sentiment was cautious and rational. Shanghai traders insisted on stabilizing prices for shipments and adopted a wait-and-see attitude, while Wuhan merchants faced increasing pressure to sell, leading to a rise in small price concessions.

Looking at the overall market fundamentals, bullish and bearish factors currently check each other. The cost side provided bottom support, coupled with the underpinning effect of steel mill pricing policies, limiting room for a deep decline. However, the demand side showed no clear improvement. Overall, the GO silicon steel market is expected to consolidate on a subdued note next week, with a slight downward bias. Some room for price reduction exists locally. The market remains dominated by just-in-time procurement and a wait-and-see approach to maintaining stability, making a one-sided price trend unlikely in the short term.

Data Source Statement: Except for publicly available information, other data are derived from public information, market communication, and SMM's internal database models, processed by SMM. They are for reference only and do not constitute decision-making advice.

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