Shanghai Market: During the Chinese New Year, the market was closed, and only some traders resumed work after the holiday, mainly fulfilling pre-holiday orders. In terms of inventory, a small amount of non-oriented silicon steel arrived during the holiday, leading to a slight increase in inventory. After the holiday, the market price of non-oriented silicon steel is unlikely to see significant adjustments, with market sentiment remaining cautious. Downstream end-user enterprises have low inventory levels and tend to purchase at lower prices, showing a clear willingness for slight restocking. In summary, the spot price of non-oriented silicon steel in Shanghai is expected to remain stable after the holiday.
Wuhan Market: Most traders are expected to resume work after the eighth day of the Chinese New Year. Currently, market sales are average. In terms of inventory, resources gradually arrived before the holiday, leading to an increase in traders' inventory levels. After the holiday, downstream end-user enterprises have certain purchasing plans, and the market outlook is relatively optimistic. In summary, the spot price of non-oriented silicon steel in Wuhan is expected to remain relatively stable with a strong trend after the holiday.
Guangdong Market: In terms of inventory, traders have conducted slight stockpiling, while steel mill inventories remain low, resulting in an overall low inventory of non-oriented silicon steel. Market sentiment is cautious, with purchasing as needed being the main approach. In summary, the price of non-oriented silicon steel in Guangzhou is expected to fluctuate after the holiday.
In terms of supply: During the Chinese New Year, long-process state-owned producers generally maintained normal production, while short-process private producers concentrated on holiday maintenance. Private producers are expected to gradually resume production after the tenth day of the Chinese New Year.
In terms of demand: During the Chinese New Year, the market was closed, with traders generally resuming work between the eighth and ninth days of the holiday. Some end-user enterprise employees are expected to return to work after the ninth day, with production resuming after the Lantern Festival. Currently, inventories of non-oriented silicon steel are relatively low across producers, trading channels, and downstream motor manufacturers, indicating a slight restocking demand for non-oriented silicon steel.
In summary, the concentrated release of non-oriented silicon steel demand in Q4 2024 poses a risk of overdraft, which may affect the procurement demand for non-oriented silicon steel in Q1 2025. The market remains cautiously observant, and the price of non-oriented silicon steel is expected to remain temporarily stable after the holiday.
