[SMM Analysis] Oriented Silicon Prices May Fluctuate Downward Next Week with Limited Price Volatility

Grain-Oriented Silicon Steel Price Dynamics

Shanghai B23R085 Grade: 11,900-12,100 yuan/mt

Wuhan 23RK085 Grade: 11,400-11,600 yuan/mt

This week, the domestic grain-oriented silicon steel market prices remained stable, with a mediocre overall trading atmosphere and a continued obvious tug-of-war between supply and demand. The futures side showed weakness, with ferrous metals futures fluctuating at lows, exerting some pressure on market sentiment. However, Baowu Group's price policy introduced this week became a key uplifting factor, as it raised the base price of silicon steel by 100 yuan/mt, effectively alleviating concerns over price declines and stabilizing the confidence of some traders.​

End-use demand was weak, with purchasing intentions remaining low. Most downstream enterprises focused on just-in-time procurement, with no plans for large-scale restocking. Traders, influenced by cost side and steel mill price adjustments, attempted to slightly increase prices for sales, but downstream enterprises showed strong resistance to higher-priced resources, leading to actual transaction volumes falling short of expectations and continuously narrowing profit margins for traders.​

The current supply-demand imbalance remains prominent, with the supply side supported by steel mill price adjustments, yet the demand side's weakness fails to provide effective support, slowing down the overall market circulation pace. As a result, most traders are maintaining a cautious wait-and-see sentiment, hesitant to stockpile blindly. Considering all factors, it is expected that next week, the spot price of domestic grain-oriented silicon steel may fluctuate downward, with limited price volatility, and the market still needs to await substantial improvements in demand or more favorable policy releases.

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