[SMM Analysis] With Fierce Market Competition, the Price of Grain-Oriented Silicon Steel May Start to Decline Slightly Next Week

Price Dynamics of Grain-Oriented Silicon Steel

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

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

This week, black futures were in the doldrums, and the market transaction atmosphere was poor. However, traders had a strong sentiment to stand firm on quotes. Given that the tender price of Baowu had not been released, market quotes barely remained stable. On the fundamental side, the mutual imposition of tariffs between China and the US continued to have a negative impact, gradually spreading and permeating the market, further disrupting market order. This led to a generally weak transaction atmosphere in the grain-oriented silicon steel market, especially in terms of exports. Some export supplies might be diverted to domestic sales, resulting in further relaxation of domestic supply. In addition, affected by the arrival of the off-season and the impact of China-US tariffs, downstream transformer enterprises adopted a more cautious procurement attitude, with extremely low willingness to restock. They mainly purchased on a need-basis, making it difficult for the demand for grain-oriented silicon steel to increase significantly.

Looking ahead, although China and the US have initiated negotiations, both sides have adopted a tough stance, and it is highly likely that the negotiation results will fall short of market expectations. In the short term, the negative impact of tariffs will continue to ferment, thereby compressing the demand space for grain-oriented silicon steel. In summary, it is expected that the price of grain-oriented silicon steel may start to decline slightly next week, and market competition will also become more intense.