[SMM Analysis] Pre-Holiday Market Trends Toward Mediocre, Post-Holiday GO Silicon Steel Prices May Adjust Narrowly

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 cold-rolled grain-oriented silicon steel market remained stable, with mediocre overall trading. The procurement pace of downstream end-users did not change, and there was no significant increase in transactions for mainstream varieties such as high magnetic permeability grain-oriented silicon steel. The ferrous metals futures fluctuated rangebound this week. Although the macro perspective was boosted by policies to expand effective investment in 2026, the stimulus effect on the confidence of the grain-oriented silicon steel market was very limited under the short-term supply-demand imbalance.

Market feedback indicated that the current purchasing enthusiasm of end-users remained low, mainly driven by just-in-time procurement from downstream industries such as transformer manufacturing, with weak pre-holiday stockpiling intentions. In terms of prices, some state-owned steel mills, including Baosteel, have announced a 100 yuan/mt raise in the base price of grain-oriented silicon steel for January 2026. However, the new resources have not yet been officially delivered to the market, having a limited impact on the current spot price. Most traders are still focusing on active sales to recover funds. Currently, traders generally maintain low inventory operations. Some small and medium-sized traders, affected by weak demand and narrowing profits, have chosen to clear their inventories and leave the market, slightly tightening the overall circulation of resources, but the support from demand remains insufficient.

In summary, the short-term supply-demand imbalance has not been alleviated. Coupled with a mediocre pre-holiday market trading atmosphere, it is expected that the spot price of cold-rolled grain-oriented silicon steel will maintain a narrow adjustment trend after the holiday. Close attention should be paid to the resumption progress of the downstream transformer industry and the arrival of new resources from steel mills.

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