[SMM Analysis] Supply-Demand Structure Maintains Healthy Balance; Grain-Oriented Silicon Steel Prices May Hold Up Well with Generally Stable with Slight Rise Next Week

Grain-Oriented Silicon Steel Price Update

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

Wuhan 23RK085 grade: 11,500-11,500 yuan/mt

After the holiday, China's GO silicon steel market was generally stable with slight rise overall, with differentiated adjustments in regional quotations. Spot quotations in the Shanghai area remained stable for the time being, while quotations in the Wuhan area were raised by 200 yuan/mt. Post-holiday market trading sentiment gradually recovered, with overall transactions improving steadily. Downstream just-in-time procurement clients showed increased purchasing enthusiasm, and market circulation activity began to improve.

Market side, ferrous metals futures recently fluctuated upward, with a strong bullish atmosphere across commodities overall. Combined with multiple policies and projects supporting the power industry chain, this provided strong sentiment support for the GO silicon steel market. At present, the industry's price transmission pace was smooth, with upstream and downstream price adjustments well-connected and no obvious obstruction. Downstream transformer and power equipment manufacturing enterprises maintained stable operating rates, with production pace orderly and steady. Supported by power grid infrastructure expansion and the continued advancement of new energy supporting projects, end-user just-in-time procurement remained robust. Many traders and downstream producers restocked raw material inventory in moderate volumes on price dips.

Supply side, mainstream steel mills in China managed shipment pace reasonably, with delivery plans proceeding in an orderly manner. Currently, the spot supply-demand structure of high-end high-permeability GO silicon steel resources maintained a healthy and balanced state. Traders in the market generally adjusted quotations in line with market trends, with spot quotations remaining firm. Most merchants held bullish expectations for the short-term market outlook. Considering multiple factors including supply and demand, futures, and industry policies, GO silicon steel prices are expected to continue the generally stable with slight rise trend next week.

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