[SMM Analysis] Supply-Demand Imbalance Persists in Grain-Oriented Silicon Steel Market, Price Stabilization Remains Uncertain

Grain-Oriented Silicon Steel Price Dynamics

Shanghai B23R085 Grade: 12,500-12,700 yuan/mt

Wuhan 23RK085 Grade: 12,400-12,600 yuan/mt

This week, grain-oriented silicon steel prices were in the doldrums, and the market transaction atmosphere was sluggish. Affected by the overall retreat after rapid rise in the ferrous metals series futures, market sentiment was cautious, with spot quotations for mainstream state-owned resources remaining stable. Supply side, state-owned mills had no centralized maintenance plans recently, and production focused on securing long-term end-user orders, with resources flowing more toward power grids and large equipment enterprises, keeping circulation relatively controllable and further supporting rigid quotations. Private grain-oriented resources, due to their low market share and insufficient downstream acceptance by small and medium-sized equipment manufacturers, still had room for negotiation in actual transaction prices. Demand side, current procurement willingness among downstream power equipment enterprises such as transformers and reactors was weak, mostly restocking as needed, with limited acceptance of high-priced resources. Coupled with some enterprises still digesting previous orders and no significant acceleration in power construction project progress, overall procurement volume did not see a noticeable increase. Trader side, due to the lack of market demand highlights, most adopted a wait-and-see attitude, with low active stockpiling willingness. Some traders experienced minor inventory accumulation from earlier periods, and to accelerate capital turnover, small concessions to promote transactions occurred occasionally. In summary, short-term supply-demand imbalance in the grain-oriented silicon steel market persists, and prices are expected to maintain a narrow adjustment pattern next week.

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