[SMM Analysis] Terminal Production Not Optimistic, Price of Non-oriented Silicon Steel to Remain in the Doldrums Next Week

Published: May 29, 2025 14:37

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[End-user Production Not Optimistic, Non-oriented Silicon Steel Prices to Remain in the Doldrums Next Week] This week, the ferrous metals series futures market was in the doldrums, with HRC spot prices falling and cost support weakening, which had a certain negative impact on the non-oriented silicon steel market. On the fundamental side, the overall supply of non-oriented silicon steel resources was loose, with insufficient spot liquidity for some grades. The impact of the off-season gradually emerged, with downstream end-user motor users showing average willingness to purchase. To facilitate smooth shipments, traders slightly lowered prices, leaving some room for profit concessions. However, there was also a structural shortage in the market, with prices for these resources remaining firm. Looking ahead, the degree of loose supply of non-oriented silicon steel may further expand, highlighting the supply-demand imbalance in the market. Insufficient demand release means that downstream end-users will continue to purchase as needed. Moreover, the production situation of downstream end-users is also not optimistic, with market sentiment generally cautious and on the sidelines. It is expected that Shanghai non-oriented silicon steel prices will remain in the doldrums next week, with some room for further price reductions.

Price Dynamics of Non-Oriented Silicon Steel

Shanghai B50A800 grade: 4,950-5,000 yuan/mt

Wuhan 50WW800 grade: 4,700-4,800 yuan/mt

Guangzhou B50A800 grade: 4,700-4,800 yuan/mt

Shanghai Market:

This week, the price of cold-rolled non-oriented silicon steel in Shanghai declined slightly, with overall market transactions being average. The ferrous metals series futures market was in the doldrums this week, and the spot price of HRC fell, weakening cost support and exerting a certain negative impact on the non-oriented silicon steel market. In terms of fundamentals, the overall supply of non-oriented silicon steel resources was loose, with insufficient spot liquidity for some grades. The impact of the off-season gradually emerged, with downstream end-user motor users showing average willingness to purchase. To facilitate sales, traders slightly lowered prices, leaving some room for price concessions. However, there was also a structural shortage in the market, with prices for these resources remaining firm. Looking ahead, the degree of loose supply of non-oriented silicon steel may further expand, highlighting the supply-demand imbalance in the market. Insufficient demand release and the downstream end-users' continued focus on purchasing as needed, coupled with less-than-optimistic production conditions among downstream end-users, have led to a generally cautious wait-and-see sentiment in the market. It is expected that the price of non-oriented silicon steel in Shanghai will remain in the doldrums next week, with some room for price reductions.

Wuhan Market:

This week, the spot price of cold-rolled non-oriented silicon steel in Wuhan dropped slightly, with average market transactions. The ferrous metals series futures market weakened somewhat this week, but the market trading atmosphere was moderately low. Traders reported that sales remained poor despite the price reduction of non-oriented silicon steel. In terms of fundamentals, the circulation volume of medium-to-low grade resources in the spot market was limited. However, with limited current profit margins, traders were cautious in ordering, maintaining overall inventory at a low level. Additionally, downstream end-use demand entered the off-season, with average production conditions and reduced willingness to purchase, exacerbating the loose supply situation. Looking ahead, as the market enters the off-season, traders have a strong wait-and-see sentiment, with low market activity and reduced inquiries and transactions. It is expected that the price of non-oriented silicon steel in Wuhan may adjust slightly downward next week.

Guangzhou Market:

This week, the price of cold-rolled non-oriented silicon steel in Guangzhou dropped slightly, with the trading atmosphere in the spot market remaining sluggish and lacking vitality. In terms of fundamentals, the ferrous metals futures market was in the doldrums, weakening cost support for silicon steel. Meanwhile, downstream end-users were affected by the off-season, with average production conditions and cautious purchasing, showing low willingness to increase inventory. However, traders maintained a low level of non-oriented silicon steel inventory, with relatively manageable sales pressure. Looking ahead, as the market gradually enters the off-season, demand is difficult to stimulate. Some leading enterprises downstream are facing increased sales pressure, further weakening their willingness to purchase. It is expected that the price of non-oriented silicon steel in Guangzhou will be in the doldrums next week, with room for price reductions.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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