[SMM Weekly Summary] Weak Demand Cannot Improve in the Short Term, and the Grain-Oriented Silicon Steel Market Was in the Doldrums This Week.

GO Silicon Steel Price Dynamics

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

Wuhan 23RK085 Grade: 11,300-11,300 yuan/mt

This week, the GO silicon steel market was in the doldrums. Spot prices were lowered by 200-300 yuan/mt, and market transactions were mediocre. Supply side, steel mills maintained stable production, and the ex-works base price for GO silicon steel was raised by 50 yuan/mt in August. Together with raw material costs providing bottom support, this theoretically underpins the market. However, the impact of the off-season is significant, making it difficult to reverse the weakness in spot. Demand side, downstream transformer enterprises are in the traditional off-season, and the progress of power grid tender implementations is relatively slow. End-users only maintained minimal restocking for rigid demand, with insufficient willingness for bulk procurement. Market transactions were sluggish, and trading sentiment was cautious. Amid the balance of bullish and bearish factors, the room for a deep decline is capped by costs and steel mill price adjustments. However, the core issue of weak demand cannot be improved in the short term. It is expected that next week, GO silicon steel will continue to consolidate in the doldrums. Overall, the market will be dominated by wait-and-see sentiment and rigid demand transactions. In local markets with high inventory pressure, a slight further price reduction cannot be ruled out. In the short term, it is difficult to see a one-sided price trend.

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