[SMM Analysis] Limited Fundamental Support for Prices — Grain-Oriented Silicon Steel Prices May Be in the Doldrums Next Week

Grain-Oriented Silicon Steel Price Update

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

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

This week, the GO silicon steel market remained generally stable, with limited price range fluctuations, sluggish market transactions, and an unchanged loose supply-demand pattern. In terms of supply, China's steel mills maintained a steady production pace, with ample supply of regular GO silicon steel resources. High-grade Hi-B resources, constrained by technical barriers and production schedule limitations, saw no supply expansion. The overall market continued to exhibit a divergent pattern of "low-end surplus and relatively balanced high-end." Demand side, downstream transformer enterprises continued to see weak orders, end-user operating rates were moderate, and procurement was mainly based on as-needed restocking. Moreover, pre-Labour Day holiday restocking demand was released below expectations, as end-user enterprises generally adopted a wait-and-see attitude, concerned about post-holiday price pullbacks, and maintained a cautious procurement pace. Transaction side, HRC futures fluctuated upward this week, providing some support to the silicon steel cost side. However, transaction performance was poor, spot GO silicon steel prices lacked upward momentum, and traders adopted a sales-based production strategy to mitigate price fluctuation risks.

Overall, the current GO silicon steel market features loose supply and demand, weak demand, and limited cost support, with short-term prices lacking trend-driven momentum. Spot GO silicon steel prices are expected to continue a fluctuating trend next week, and sustained attention should be paid to steel mill pricing policy adjustments, end-user order releases, and inventory changes around the Labour Day holiday.

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