[SMM Analysis] Supply-Demand Pattern Remains Unchanged, Oriented Silicon Steel Prices Expected to Stay in the Doldrums

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, prices for grain-oriented silicon steel in the Shanghai market remained stable, with overall trading activity showing a slight improvement WoW, but lacking significant recovery momentum. Analysis of core influencing factors indicates that bullish and bearish factors were relatively balanced, jointly dominating the current market pattern.

Futures fluctuations directly influenced market sentiment. This week, HRC futures retreated after a rapid rise, failing to provide sustained upward support, which kept overall market participant confidence cautious and wait-and-see sentiment strong. Price-wise, quotations for mainstream state-owned and private resources remained stable with no significant adjustments, primarily constrained by supply and demand fundamentals. Supply side, the non-oriented silicon steel market currently faces relatively prominent supply pressure, with some traders maintaining inventory at reasonably high levels, indirectly transmitting pressure to the grain-oriented silicon steel market. Demand side, end-use industry demand remained sluggish, with procurement pace in key application areas like transformers and motors slowing down, dominated by rigid demand purchases and lacking bulk restocking momentum, strongly suppressing price increases.

Overall, the current market is in a state where weak supply and demand are suppressing price gains. In the short term, without substantive changes in the supply-demand pattern, the market is unlikely to form a trending market. Prices for grain-oriented silicon steel in the Shanghai market are expected to remain in the doldrums next week, with the overall market still awaiting clear positive signals from both supply and demand to break the deadlock.

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

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