[SMM Weekly Wrap-up] Cost Support Weakened, Non-Oriented Silicon Steel Market in the Doldrums This Week

Price Dynamics of Non-Oriented Silicon Steel

Shanghai B50A800 Grade: 4,380-4,380 yuan/mt

Guangzhou B50A800 Grade: 4,200-4,200 yuan/mt

Wuhan 50WW800 Grade: 4,280-4,250 yuan/mt

Shanghai Market: This week, spot prices of cold-rolled non-oriented silicon steel in the Shanghai market were in the doldrums, with some grades falling by 50-100 yuan/mt, and overall transaction performance was sluggish. Market feedback indicated that ferrous metals futures weakened this week, providing insufficient cost support for silicon steel. Additionally, downstream motor enterprises maintained a slow procurement pace, leading to a lack of improvement on the demand side. Traders generally reported sluggish transactions and mostly chose to offer small discounts when selling. However, firm ordering costs from state-owned steel mills provided some support to spot prices. Overall, spot prices of cold-rolled non-oriented silicon steel in the Shanghai market are expected to remain in the doldrums next week.

Guangzhou Market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou was in the doldrums, with relatively sluggish transaction performance. Market feedback indicated that HRC futures continued to decline this week, dampening market confidence. Downstream procurement enthusiasm was low, and traders focused on actively selling and recovering funds. The overall trading atmosphere was sluggish, but inventory levels were not high, and sales pressure was moderate. Overall, spot prices of cold-rolled non-oriented silicon steel in the Guangzhou market are expected to remain in the doldrums next week.

Wuhan Market: This week, cold-rolled non-oriented silicon steel prices in the Wuhan market were in the doldrums, with most grades falling by 30-50 yuan/mt and transaction performance being sluggish. Market feedback indicated that traders slightly lowered their spot quotations, but downstream purchasing enthusiasm was mediocre, dominated by just-in-time procurement. The overall trading atmosphere was relatively sluggish. Overall, spot prices of cold-rolled non-oriented silicon steel in the Wuhan market are expected to remain in the doldrums next week.

Data Source Statement:

(In addition to publicly available information, the data in this report are derived from public sources (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, NBS data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM’s internal database models. They have been obtained through comprehensive analysis and reasonable inference by the research team. They are for reference only and do not constitute decision-making advice.

SMM reserves the right of final interpretation of this statement and the right to adjust and modify the statement content according to actual circumstances.