【SMM Analysis】Motor Enterprises' Purchasing Enthusiasm Greatly Suppressed, Silicon Steel Prices May Stabilize

Shanghai Silicon Steel: Market in the Doldrums, Mediocre Transactions

This week, the silicon steel market in Shanghai remained in the doldrums, with overall transaction performance being less than optimistic and showing signs of fatigue. In terms of prices, Baosteel's B50A800 non-oriented silicon steel was quoted at 5,150 yuan/mt, and Wuhan Steel's 50WW800 was quoted at 5,000 yuan/mt, both flat WoW, with relatively small price fluctuations.

From market feedback, influenced by tariff news, the futures market fluctuated downward this week, leading to a continuous slight drop in spot steel prices. This situation has generally turned silicon steel traders' sentiment pessimistic. However, it is worth noting that due to controllable overall inventory pressure, the prices of state-owned enterprise resources remained relatively firm. According to SteelUnion statistics, spot inventory in the Shanghai market increased slightly this week, but the overall volume of Baowu resources remained relatively small.

From a sentiment perspective, the impact of tariff information is expected to continue fermenting in the short term. This will significantly affect both direct exports of silicon steel and indirectly related industries, greatly dampening the purchasing enthusiasm of downstream motor enterprises, with noticeably insufficient purchasing momentum. Considering various factors, it is expected that silicon steel prices in Shanghai may stabilize next week.

Wuhan Silicon Steel: Spot Prices in the Doldrums, Mediocre Transactions

This week, the spot prices of non-oriented silicon steel in the Wuhan market remained in the doldrums, with overall transaction performance at a mediocre level, lacking significant growth momentum. In terms of prices, Wuhan Steel's 50WW800 was quoted at 4,950 yuan/mt, and Wuhan Steel's 50WW350 was quoted at 5,850 yuan/mt, both flat WoW.

Specifically, the ferrous metals futures market showed a weak downward trend this week, while the spot prices of non-oriented silicon steel resources in the Wuhan market remained stable, and the spot prices of oriented silicon steel rose slightly. However, the overall market trading performance remained lukewarm. In the non-oriented silicon steel sector, low-grade spot resources in the market are still at a relatively low level, and the issue of insufficient market demand is prominent. Traders mainly focused on selling, with some room for negotiation in actual transactions.

From a sentiment perspective, merchants generally adopted a cautious wait-and-see attitude towards the future market, and in the face of increasing market uncertainty, they were reluctant to take aggressive business strategies. Considering various factors in the current market, it is expected that the spot prices of non-oriented silicon steel in the Wuhan market may continue to remain in the doldrums next week.

Guangzhou Silicon Steel: Prices Weak, Mediocre Transactions

This week, the spot prices of cold-rolled non-oriented silicon steel in the Guangzhou market showed a weak trend, with overall transaction performance being mediocre and lacking vitality. In terms of prices, Baosteel's B50A800 was quoted at 5,150 yuan/mt, flat WoW; Wuhan Steel's 50WW800 was quoted at 5,000 yuan/mt, also flat WoW.

Specifically, HRC futures fluctuated downward this week, leading to a slight drop in spot prices of some steel mill resources in the Guangzhou market, resulting in an overall inactive trading atmosphere. According to market feedback, spot resources in the market are still relatively scarce, and end-use demand remains weak. Traders mainly focused on selling to alleviate inventory pressure, with some room for negotiation in actual transactions.

In terms of inventory, due to various uncertainties in the global trade landscape, traders' willingness to stockpile is generally low, keeping the overall inventory level in the Hangzhou market at a relatively low level. From a sentiment perspective, merchants in the spot market are mostly in a wait-and-see mode, cautiously dealing with market changes in the face of unclear market trends. Considering various factors, it is expected that the spot prices of some non-oriented silicon steel resources in the Guangzhou market may undergo narrow adjustments next week.