[SMM Weekly Wrap] Supply-Demand Pattern Solid, Next Week Grain-Oriented Silicon Steel Prices to Remain Temporarily Stable

Grain-oriented Silicon Steel Price Dynamics

Shanghai B23R085 grade: 12,200-12,200 yuan/mt

Wuhan 23RK085 grade: 11,700-11,700 yuan/mt

Cold-rolled grain-oriented silicon steel spot prices remained generally stable this week, with a steady and orderly trading pace. Ferrous metals futures retreated after rapid rise with limited fluctuations, which exerted a weak impact on the sentiment of the silicon steel spot market, causing overall market price fluctuations to narrow. Although earlier price hike policies by steel mills were implemented and released positive signals, the market was in the policy digestion phase. Spot prices showed no significant change, mainstream quotations held steady, and the price spread between high and low quotes gradually narrowed, with overall quotes tending to unify.

Demand side, downstream transformer and power equipment enterprises made just-in-time procurement as usual. End-users restocked at a steady pace, without centralized stockpiling or large-scale buying. Overall transactions were dominated by just-in-time orders, supporting market price stability and preventing price drops caused by weak demand. Supply side, major steel mills maintained stable production, with mainstream grain-oriented silicon steel resources released normally. Overall market supply was ample and orderly, inventory remained within a reasonable and controllable range, and there was no significant inventory buildup or destocking pressure.

Overall, the current grain-oriented silicon steel market saw basically balanced supply and demand. Traders quoted prices stably and sold flexibly, with a moderate wait-and-see atmosphere and no significant sentiment disturbances from price fluctuations. The overall market lacked strong drivers for major price movements, and just-in-time demand provided stable support. Given the stable supply-demand pattern, calm market sentiment, and controllable inventory pressure, cold-rolled grain-oriented silicon steel spot prices are expected to continue their generally stable trend next week.

Data Source Statement: Except for public information, all other data are based on public information, market communication, and SMM's internal database models, processed by SMM, for reference only and do not constitute decision-making advice.

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