Market to Shift to Demand Verification Phase Next Week; Non-Oriented Silicon Steel Prices May Fluctuate

Market Overview

This week, the national non-oriented silicon steel market remained generally stable, with sluggish transactions. Affected by the post-holiday resumption pace, traders gradually returned to the market, but end-user procurement was delayed. Substantial demand is expected to be released after the Lantern Festival.

Shanghai Market

Inventory Pressure Emerging: Spot inventory levels have risen significantly compared to pre-holiday levels, reaching a recent high.

Tug-of-War Between Sellers and Buyers: Steel mills tentatively increased prices, but agents and end-users showed low acceptance of high prices, leading to a price stalemate. Currently, traders are mainly focused on fulfilling pre-holiday orders, with strong market sentiment of wait-and-see.

Market Outlook: High inventory combined with delayed demand is expected to maintain a stable with a weak trend pattern next week.

Wuhan Market

Structural Inventory Divergence: State-owned steel mill resources maintained firm costs, with tight supply of low-grade spot cargo; private mills saw a slight inventory accumulation, with overall pressure remaining manageable.

Market Outlook: HRC futures fluctuations did not disrupt the spot market. Fundamentals remain stable, and prices are likely to fluctuate rangebound, with the amplitude influenced by the overall trend of the steel market.

Guangzhou Market

Weak Supply and Demand: Domestic steel mills focused on destocking, with moderate production enthusiasm; downstream resumed work slowly, and transactions during the week were mainly sporadic inquiries.

Market Outlook: Merchants are focused on post-holiday preparations, while end-user procurement has not been fully released. The short-term market lacks directional drivers. The pace of supply and demand recovery will determine price elasticity, with prices expected to fluctuate rangebound.

Conclusion

Demand Fulfillment Period: The intensity of end-user restocking after the Lantern Festival will be a key variable for prices.

Steel Mill Policy Trends: The tug-of-war between cost support and market acceptance may intensify regional price spread differentiation.

The post-holiday market is in a transitional phase, with a clear price stalemate. As downstream resumption of work and production progresses, the market next week may gradually shift from a “priced but inactive” phase to a demand verification stage. Non-oriented silicon steel prices are expected to fluctuate next week.