[SMM Analysis] The Loose Market Pattern Remained Unchanged, and Grain-Oriented Silicon Steel Prices May Temporarily Hold Steady Next Week

Grain-Oriented Silicon Steel Price Dynamics

Shanghai B23R085 grade: 11,700-11,700 yuan/mt

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

Cold-rolled GO silicon steel prices were in the doldrums this week, with overall market transactions remaining sluggish. Market feedback indicated that ferrous metals futures held up well this week, providing some sentiment support to the overall steel market. However, GO silicon steel spot cargo was dominated by its own supply-demand dynamics, exhibiting distinct independent market characteristics. Moreover, Baowu maintained flat ordering prices for GO silicon steel in May without raising them in line with non-oriented silicon steel, offering limited support to spot prices.

Currently, downstream transformer industry demand showed notable divergence. Orders for high-end projects such as ultra-high voltage and data center supporting facilities remained stable, underpinning demand for high-grade Hi-B silicon steel. However, orders for ordinary distribution transformers were weak, with demand for mid-to-low grade resources remaining subdued. Most transformer enterprises maintained just-in-time procurement and low-inventory operating strategies, with limited market purchasing enthusiasm. The supply side exhibited structural looseness — spot resources of ordinary CGO GO silicon steel were ample in market circulation, with some small and medium-sized traders offering slight concessions to accelerate capital turnover. Meanwhile, high-end grade resources such as high magnetic induction and ultra-thin specifications remained tight, with top-tier enterprises holding prices firm.

Overall, the upward momentum in ferrous metals futures and top-tier steel mills holding prices firm provided a floor for silicon steel prices. However, the pattern of generally weak downstream demand and ample supply of ordinary grades remained unchanged, leaving limited room for prices to move in either direction. GO silicon steel spot prices in the Shanghai market are expected to remain in the doldrums next week.

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