[SMM Weekly Summary] Grain-Oriented Base Prices Unchanged, Market Wait-and-See Sentiment Prevails, Price Cuts Still Possible Next Week

Grain-oriented Silicon Steel Price Dynamics

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

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

This week, spot quotations for grain-oriented silicon steel in Shanghai were lowered by 100 yuan/mt, while prices in Wuhan remained stable. Market transactions did not see a significant increase in volume after the price cut. Prices gradually stopped falling during the week, with an overall pattern of initial weakness followed by stabilization.

Supply side, production plans at mainstream steel mills are being carried out steadily, with ample spot supply overall. There is a large volume of circulating cargo for mid- and low-grade products, and structural supply pressure persists. After this round of price adjustments, traders' willingness to sell at low prices has declined, and low-priced cargo in the market is gradually decreasing. Demand side, transformer manufacturers have seen limited improvement in operating rates, and power grid tender orders are landing slowly. Downstream buyers are mostly making small, need-based restocking purchases, while large-scale stockpiling remains cautious. Overall market transactions are mediocre. High magnetic induction grades show resilience supported by long-term ultra-high voltage plans, but short-term positives have yet to materialize. Cost side, hot-rolled substrate prices are drifting lower, providing limited cost support. Baosteel's October pricing policy has been released, with base prices for grain-oriented silicon steel unchanged. Market confidence is insufficient, and a strong wait-and-see sentiment persists.

Overall, structural supply pressure remains in the market, and grain-oriented silicon steel prices may still decline next week.

Data Source Statement:

(All data in this report, except for public information, are 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 models. They are produced through comprehensive analysis and reasonable inference by the research team, and are for reference only, not constituting investment advice.

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