[SMM Analysis] Grain-oriented silicon steel will show an in the doldrums trend after the Labour Day holiday, with room for price correction

Price Trends of Grain-Oriented Electrical Steel

Shanghai B23R085 grade: 14,400-14,600 yuan/mt

Wuhan 23RK085 grade: 14,200-14,700 yuan/mt

This week, the HRC futures market continued to exhibit a volatile trend, primarily driven by cost factors, which had a slight negative impact on the grain-oriented electrical steel market. Tariff news continued to influence the grain-oriented electrical steel market, particularly in terms of exports. Some export supplies may be diverted to domestic sales, leading to a further easing of domestic supply. Currently, the market is well-supplied, and with the off-season approaching, downstream transformer enterprises are cautious in purchasing grain-oriented electrical steel, mainly purchasing as needed. State-owned steel mills, relying on product quality, maintained firm prices, while some private steel mills, seeking to sell their products, offered room for negotiation on transaction prices.

Subsequent tariff news will continue to affect the market, exerting a significant impact on the direct exports of grain-oriented electrical steel and the exports of related downstream industries. However, steel mills have a strong sentiment to stand firm on quotes, and market transaction prices have barely remained stable. In summary, it is expected that after the Labour Day holiday, the price of grain-oriented electrical steel will show a weak and stable trend, with some room for price adjustments.