[SMM Analysis] Limited Supply of Certain Specifications, Short-Term Downside Room for Cold-Rolled Non-Oriented Silicon Steel Prices

This week, in the Shanghai non-oriented silicon steel market, the transaction price of the B50A800 grade was around 5,200 yuan/mt.

This week, in the Guangzhou non-oriented silicon steel market, the transaction price of the B50A800 grade was around 4,900 yuan/mt.

This week, in the Wuhan non-oriented silicon steel market, the transaction price of the 50WW800 grade was around 4,900 yuan/mt.

Shanghai Market: Recently, the prices of some non-oriented silicon steel resources in Shanghai have remained stable, with overall market transactions fluctuating downward. Market feedback indicates that HRC futures stopped declining and strengthened, while steel spot prices rose simultaneously. Additionally, the inventory of non-oriented silicon steel in the market remains at a relatively low level, providing support for spot prices. Traders are relatively cautious, and most producers are focusing on year-end direct supply to NEV automakers and leading home appliance enterprises, leading to reduced circulation in the mid-to-low-grade market. In summary, the downside room for short-term cold-rolled non-oriented silicon steel prices in Shanghai is limited.

Wuhan Market: Recently, the spot prices of non-oriented silicon steel in Wuhan have dropped slightly, with actual transactions still having room for negotiation. Traders reported that as the year-end approaches, market activity has been sluggish, and the transaction performance of non-oriented silicon steel continues to weaken. Downstream end-user enterprises have gradually stopped stockpiling, leading to further reductions in traders' orders. However, spot resources remain relatively scarce, and traders' inventories have not increased significantly. The weak supply and demand situation provides some support for spot prices. In summary, the short-term cold-rolled non-oriented silicon steel spot prices in Wuhan are expected to remain stable.

Guangzhou Market: Recently, the spot prices of non-oriented silicon steel in Guangzhou have fluctuated downward, with sluggish transactions. In the market, the ferrous metals series futures rebounded this week, slightly altering overall market sentiment. However, transactions remain weak, and confidence in the future market is lacking. Traders have lowered their quotations, with private producers' resource prices experiencing larger declines compared to relatively smaller declines for state-owned producers' resources. On the fundamentals, as the Chinese New Year approaches, downstream motor production is gradually decreasing, reducing the enthusiasm for purchasing non-oriented silicon steel. The pre-holiday market is likely to experience a supply surplus. On the macro level, the 2025 national subsidy policy for trade-in programs is expected to intensify, especially in the home appliance sector, which may lead to a sustained recovery in demand for non-oriented silicon steel. In summary, the short-term cold-rolled non-oriented silicon steel spot prices in Guangzhou are expected to remain stable with a weak trend.