This week, the transaction volume of non-oriented silicon steel continued to decline slightly. The main reason is weak demand and low procurement volume from end users. It is likely that the price of non-oriented silicon steel will remain low after the National Day holiday.
Domestic Non-Oriented Silicon Steel Market:
1. Low-grade cold-rolled non-oriented silicon steel: This week, the price of non-oriented silicon steel remained stable, but transactions were sluggish. The transaction volume of some grades decreased slightly, by 10-20 yuan/ton. Traders' sentiment has turned negative, focusing on sales, and there is not much spot inventory in the market.
By market: Transactions in the East China market were poor, and traders had to offer slight price concessions to sell their inventory. End-user demand was weak, and procurement volume was extremely low. Due to high ordering costs in October, there are generally no low-priced resources in the market. The price of 800 grade from private steel mills and first-tier steel mills has been consistent for a long time, at around 5500 yuan/ton. Traders reported extremely sluggish transactions. Prices in the South China market were stable, but transactions were poor. The price of 1300 grade also showed a slight downward trend. It is understood that the mainstream price of 1300 grade is 5350 yuan/ton, and even sales are difficult. There is still relatively more inventory from Zhanbao in the market, but end-user demand is low. Prices in the Central China market fell slightly, with limited spot inventory. Most traders are paying close attention to the price on E-steel, and it is understood that prices fell slightly this week, by about 50 yuan/ton.
On the steel mill side, although the futures prices in October have slightly increased, except for Baosteel Group, some steel mills have negotiated prices or kept the actual order prices flat. It is understood that some steel mills have insufficient order volumes and slight shortfalls. There are also market rumors of significant production cuts by steel mills. After verification with steel mills, only Ansteel and Baosteel have reduced production, and Baosteel's reduction was relatively small, having little impact on supply.
2. Medium and high-grade non-oriented silicon steel: This week, the prices of medium and high-grade non-oriented silicon steel remained stable, with little change in the market. Inventory is not large, and steel mill ordering is generally flat, with October high-grade futures prices also flat. The traditional high-grade 470 is priced at 6550 yuan/ton, and the 350 grade is priced at 7200 yuan/ton. The price of medium and high-grade non-oriented silicon steel is expected to remain stable.
Data shows that in August, the production and sales of new energy vehicles reached 99,000 and 101,000 units respectively, an increase of 39% and 49.5% year-on-year. Among them, the production and sales of pure electric vehicles reached 72,000 and 73,000 units respectively, and the production and sales of plug-in hybrid vehicles reached 27,000 and 28,000 units respectively.
Next week's forecast: This week, the transaction volume of non-oriented silicon steel continued to decline slightly. The main reason is weak demand and low procurement volume from end users. In addition, the futures prices in October are still high, and traders have no low-priced inventory. With prices difficult to rise, other steel products have also shown a downward trend, which has a significant impact on market sentiment. Even though there is not much spot inventory in the market, traders cannot keep their spot inventory indefinitely, so the transaction price has fallen slightly. It is likely that the price of non-oriented silicon steel will remain low after the National Day holiday.
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