[SMM Weekly Review] Grain-Oriented Silicon Steel Prices Weakened Before Stabilizing This Week, With Some Bearish Sentiment Already Released

Grain-Oriented Silicon Steel Price Dynamics

Shanghai B23R085 grade: 11,800-11,800 yuan/mt

Wuhan 23RK085 grade: 11,200-11,200 yuan/mt

This week, spot quotations for grain-oriented silicon steel in China were lowered by 100 yuan/mt at the start of the week. After the price cut, market transactions did not see a significant increase in volume. Prices gradually stopped falling during the week, with the overall trend weakening first and then stabilizing.

On the supply side, production plans at mainstream steel mills were carried out steadily, with ample spot supply overall. Mid- and low-grade circulating cargo was relatively abundant, and structural supply pressure persisted. After this round of price adjustments, some traders showed reduced willingness to sell at low prices, and low-priced resources in the market gradually decreased.

On the demand side, transformer manufacturers saw limited improvement in operating rates, and the pace of power grid tender order implementation remained slow. Downstream enterprises continued to make sporadic restocking purchases based on rigid demand, while large-volume procurement and stockpiling remained cautious. Overall transaction sentiment was subdued. High magnetic induction grades benefited from long-term ultra-high voltage planning and showed some resilience, but positive factors have yet to be fully released in the short term.

On the cost side, hot-rolled substrate prices for raw materials consolidated on a subdued note, providing limited cost support. No major industry policies or significant price adjustments from steel mills were reported, and market participants largely adopted a wait-and-see sentiment.

Overall, this round of price cuts has largely released short-term downward pressure, leaving limited room for further declines. The grain-oriented silicon steel market is expected to remain stable next week.

Data Source Statement:

All data in this report, except for publicly available information, are derived from public sources (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 data published by various associations and institutions), market communication, and SMM's internal database models. They are produced through comprehensive analysis and reasonable inference by the research team and are for reference only, not constituting decision-making advice.

Shanghai Metals Market reserves the right of final interpretation of this statement and the right to adjust and modify its content based on actual circumstances.