[SMM Analysis] The imbalance has eased after the price reduction, and the non-oriented silicon steel will be in the doldrums next week.

Price Dynamics of Non-Oriented Silicon Steel

Shanghai, Grade B50A800: 5,000-5,050 yuan/mt

Guangzhou, Grade B50A800: 4,750-4,850 yuan/mt

Wuhan, Grade 50WW800: 4,750-4,850 yuan/mt

Shanghai Market:

This week, the price of cold-rolled non-oriented silicon steel in Shanghai dropped slightly, with a decline of around 50 yuan/mt. The outcome of the Sino-US tariff negotiations this week exceeded market expectations, leading to a strengthening of the ferrous metals series futures market. However, there was a trend of pullback approaching the weekend, providing limited positive impact on the market. Regarding fundamental conditions, Baowu announced its tender price, which remained flat. Both state-owned and private producers have production lines entering the commissioning phase, potentially further increasing the supply of non-oriented silicon steel resources. The liquidity of spot cargo for some grades is insufficient. To facilitate smooth sales, traders slightly lowered their prices. As the market has entered the off-season, downstream end-user motor users are cautious, with a strong wait-and-see sentiment and low willingness to replenish high inventory levels, primarily purchasing on demand. Looking ahead, the supply of non-oriented silicon steel is expected to remain relatively loose, suppressing market confidence. In summary, the fundamental imbalance shows a trend of expansion, but it has eased somewhat after the price decline. It is expected that the price of non-oriented silicon steel in Shanghai will remain in the doldrums next week.

Wuhan Market:

This week, the spot price of cold-rolled non-oriented silicon steel in Wuhan declined, with market transaction performance being average. Although the ferrous metals series futures market strengthened somewhat, the market trading atmosphere failed to recover. Some traders reported that order-taking was not very satisfactory, and prices experienced a slight decline. Regarding fundamental conditions, WISCO had relatively good order-taking, with overall inventory pressure being relatively small. However, the tender price remained flat, resulting in higher ordering costs for traders and a lower willingness to replenish inventory. Meanwhile, the circulation volume of some grades in the spot market was relatively low, and prices remained stable for the time being. Looking ahead, as the market has not shown signs of recovery for a prolonged period, traders generally maintain a cautious wait-and-see sentiment, with their business strategy focusing on maintaining low inventory levels. In summary, it is expected that the price of non-oriented silicon steel in Wuhan may undergo narrow adjustments next week.

Guangzhou Market:

This week, the price of cold-rolled non-oriented silicon steel in Guangzhou dropped slightly, with market transaction activity remaining low. Regarding fundamental conditions, influenced by the Sino-US tariff negotiations exceeding market expectations, the futures market strengthened somewhat, driving a slight increase in the spot price of steel. However, traders maintained a strong wait-and-see sentiment, and the overall trading atmosphere for non-oriented silicon steel remained poor. Looking ahead, although the impact of Sino-US tariffs has significantly diminished, the market is gradually entering the off-season, with a relatively loose supply and demand structure and a strong wait-and-see sentiment in the market. In summary, it is expected that the price of non-oriented silicon steel in Guangzhou will undergo narrow adjustments next week.