It is reported that the latest steel market in Shanghai shows that CR silicon steel coil will witness oversupply in the second half of this year. The reasons are as follows:

1. Statistics show that China has produced 1.811 million tonnes silicon steel sheet during this January to April up by 0.555 million tonnes or 44.2% compared with the same period of last year. Among others, the production of top five CR silicon steel coil producers in China totaled 1.575 million tonnes up by 0.535 million tonnes or 55.44%YoY.

2. According to the statistics, China has imported 0.3166 million tonnes CR silicon steel coil in January to April, 0.2303 million tonnes of which were all non-oriented ones, an increase of 99,300 tonnes or 75.71%YoY. However, the export of non-oriented silicon steel coil during the same time just accumulated at 37,500 tonnes just up 5,000 tonnes or 15.3%YoY which means most products will have to be consumed on the domestic market.

3. On the other hand, the price of non oriented silicon steel coil kept at an upward trend during January to April, pushing some enterprises to purchase HR silicon steel coil, CR silicon steel coil scrap or common carbon steel strip, instead of CR ones. That also leads to a demand decrease on CR silicon steel coil.

4. Some new CR silicon steel coil producers have emerged in recent several years, which will result in huge production in the future.

All in all, the supply of CR silicon steel coil will be too much in the second half of this year or even for a longer period.

(Sourced from MySteel.net)
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