[SMM Weekly Summary] Demand Shows No Clear Recovery Signal Yet, Grain-Oriented Silicon Steel to Continue in the Doldrums Next Week

Grain-Oriented Silicon Steel Price Dynamics

Shanghai B23R085 grade: 11,900-11,900 yuan/mt

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

This week, China's grain-oriented silicon steel market remained stable overall. Spot prices diverged across regions, but mainstream market quotes held steady. There were no public price adjustment moves in Shanghai or Wuhan, and overall market trading performance was mediocre. Supply side, mainstream steel mills kept their production pace stable. In August, the ex-works base price for GO silicon steel was raised by 50 yuan/mt. Combined with raw material costs, this formed bottom support, and steel mills had a strong willingness to hold prices firm, theoretically providing a floor for spot prices. However, the market was in the traditional demand off-season, and cost-side positives were blocked from transmitting upward, making it difficult to drive spot prices higher. Demand side, downstream transformer enterprises entered the traditional high-temperature off-season, and power grid tender projects were implemented at a relatively slow pace. End-user enterprises adopted conservative procurement strategies. Most only maintained small-scale rigid-demand restocking, and willingness to proactively stockpile in bulk was insufficient. The overall trading atmosphere was sluggish, and market participants remained cautious.

Overall, supply and demand continued to contend. Costs and steel mill price adjustments effectively limited the room for deep market price declines, but there was no clear signal of short-term demand recovery. Next week, GO silicon steel is expected to continue its weak but stable consolidation pattern, with market trading still dominated by rigid-demand transactions. Going forward, continue to monitor power grid tender fulfillment progress, downstream operating conditions, and raw material cost fluctuations.

Data Source Statement:

(Apart from public information, other data in this report are all derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM's internal database model. They have been comprehensively analyzed and reasonably inferred by the research team, and are provided for reference only, not constituting decision-making advice.

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