[SMM Analysis] Core Demand Support Remains Solid, GO Silicon Steel Prices Expected to Hold Steady Next Week

GO Silicon Steel Price Dynamics

Shanghai B23R085 Grade: 11,500-11,500 yuan/mt

Wuhan 23RK085 Grade: 11,200-11,200 yuan/mt

This week, the cold-rolled grain-oriented silicon steel market stabilized overall, with a slower pace of market operations. Market feedback indicated that HRC futures first rose then fell this week. As a result, local GO silicon steel traders mostly maintained stable quotes, without significant price adjustments. End-users mainly restocked as needed, and the overall trading atmosphere was lukewarm, but core demand remained solid.

Cost side, the procurement costs for GO silicon steel from major state-owned steel mills such as Baowu and Wuhan Iron and Steel remained firm. The impact of upstream raw material price fluctuations on production costs was limited. Additionally, due to the high complexity of the GO silicon steel production process and relatively stable capacity release, spot prices received some support.

In terms of resource circulation, the market structure showed clear differentiation. High magnetic induction GO silicon steel (Hi-B series) benefited from accelerated ultra-high voltage power grid construction and expanded new energy installations, leading to a slight adjustment in spot prices followed by stability. However, influenced by weak purchasing sentiment in the terminal manufacturing sector, the trading pace was slow, and although there was no significant downward pressure, upward momentum was lacking, resulting in an overall stable trend.

Overall, the current supply-demand pattern of GO silicon steel was relatively balanced, with cost support and demand differentiation creating a tug-of-war. It is expected that next week, the spot price of cold-rolled GO silicon steel will continue to fluctuate rangebound, and the specific trend will still need to closely monitor the release of downstream end-use demand.

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