[SMM Analysis] Demand boost for non-oriented silicon steel is limited, and there is still a possibility of price decline next week

Published: Jun 6, 2025 18:43

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[Limited Demand Boost for Non-Oriented Silicon Steel, Price Decline Still Possible Next Week] This week, the spot price of non-oriented silicon steel in the Shanghai market fell, with overall market transactions being average. Market feedback indicates that influenced by bearish fundamental factors, traders' sentiment has turned pessimistic. Despite relatively small inventory pressure from state-owned enterprises' resources in the market, downstream buyers, expecting weak prices, have been demanding price reductions from traders for replenishment. Currently in the off-season for demand, the overall production and sales of downstream industrial motors have been hindered, with growth in the automotive and home appliance industries gradually narrowing, resulting in limited demand boost for non-oriented silicon steel. Meanwhile, the market is facing significant supply pressure, with intense price competition among merchants and instances of hidden price reductions for shipments. In addition, the price of raw material silicon steel hard-rolled coil has decreased, further weakening the cost support for non-oriented silicon steel. In summary, it is expected that the price of non-oriented silicon steel in Shanghai may operate in the doldrums next week, with a certain possibility of decline.

Price Trends of Non-Oriented Silicon Steel

Shanghai B50A800 grade: 4,900-4,950 yuan/mt

Wuhan 50WW800 grade: 4,650-4,750 yuan/mt

Guangzhou B50A800 grade: 4,650-4,750 yuan/mt

Shanghai Market:

This week, the spot price of non-oriented silicon steel in the Shanghai market declined, with overall market transactions being average. Market feedback indicates that influenced by bearish fundamental factors, traders' sentiment turned pessimistic. Despite relatively small inventory pressure from state-owned enterprises' resources in the market, downstream demand was weak due to expectations of lower prices, leading to requests from downstream buyers for traders to lower prices and replenish stocks. Currently in the off-season for demand, the overall production and sales of downstream industrial motors are hindered, with growth in the automotive and home appliance industries gradually narrowing, resulting in limited demand boost for non-oriented silicon steel. Meanwhile, the market is under significant supply pressure, with noticeable price competition among merchants and instances of unannounced price reductions for shipments. Additionally, the price of raw silicon steel hard-rolled coil has decreased, further weakening the cost support for non-oriented silicon steel. In summary, it is expected that the price of non-oriented silicon steel in Shanghai may remain in the doldrums next week, with a certain possibility of further decline.

Wuhan Silicon Steel:

This week, the spot price of non-oriented silicon steel in the Wuhan market declined, with overall market transactions being average. According to market feedback, the spot price of non-oriented silicon steel in the Wuhan market fell, with traders' confidence remaining low and bearish sentiment prevailing. Their operations primarily focused on shipments, with some room for price negotiation in actual transactions, and the market trading atmosphere was sluggish. Currently, the circulation of medium and low-grade resources in the market remains relatively scarce, with overall inventory levels being low. Against the backdrop of a continuously weakening market, merchants in the spot market generally adopted a cautious wait-and-see attitude. In summary, it is expected that the spot price of non-oriented silicon steel in Wuhan may undergo narrow adjustments next week.

Guangzhou Silicon Steel:

This week, the market conditions for non-oriented silicon steel in Guangzhou were in the doldrums, with spot trading activity remaining at a low level. Currently, the inventory of non-oriented silicon steel in the Guangzhou region is at a historical low, with relatively manageable sales pressure for merchants. However, constrained by the traditional consumption off-season, the purchase willingness of downstream end-users is insufficient, resulting in persistently weak market transactions. Traders generally maintain a cautious attitude, with quotes primarily aimed at maintaining stability. From a fundamental perspective, the trading market exhibits a pattern of weak supply and demand, with low inventory providing some bottom support for prices. In summary, it is expected that the spot price of non-oriented silicon steel in Guangzhou will maintain a weak consolidation trend next week.

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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