[SMM Analysis] Baosteel Refuses to Budge on Prices to Support the Market; Oriented Silicon Steel Prices to Remain in the Doldrums Next Week

Price Dynamics of Grain-Oriented Silicon Steel

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

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

This week, spot prices of cold-rolled grain-oriented silicon steel remained stable, while overall market transactions were weak. Most end-users maintained small-lot restocking and operated cautiously. Market feedback indicated that futures fluctuated downward, but spot prices held relatively firm. Baosteel's November pricing policy confirmed that grain-oriented silicon steel prices would remain unchanged, coupled with strong reluctance among traders and some steel mills to budge on prices, leading to rangebound fluctuations in spot prices. Supply-side pressure continued to mount. In Q3, Liansteel's 100,000 mt production line began trial production, Wangbian Electric's 80,000 mt project operated at full capacity, and previously added capacity was released, boosting total industry capacity by over 40% YoY. Although demand showed some improvement, with orders from domestic transformer enterprises rising MoM and exports performing strongly, driven by replacement demand in Europe and the U.S. and significant boosts from emerging markets, the demand increase was insufficient to absorb the supply growth, leaving the supply-exceeds-demand dynamic unchanged.

Overall, following the previous sharp price decline, bearish sentiment temporarily subsided. Supported by leading enterprises like Baosteel refusing to budge on prices to provide a floor, spot prices of grain-oriented silicon steel are expected to remain in the doldrums next week.

Data Source Statement: Except for publicly available information, other data are derived by SMM based on public information, market communication, and SMM's internal database model, and are for reference only, not constituting decision-making advice.

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