[SMM Analysis] Positive Factors Effectively Released, Grain-Oriented Silicon Steel Prices May Run Stable Temporarily After the Holiday

GO Silicon Steel Price Dynamics

Shanghai B23R085 grade: 11,700-11,700 yuan/mt

Wuhan 23RK085 grade: 11,300-11,300 yuan/mt

This week, cold-rolled GO silicon steel spot prices held up well with a generally stable with slight rise trend. Prices of some grades were raised by 100-200 yuan/mt, and overall market activity improved. Ferrous metals futures swung wildly this week, providing some support to the spot market. Market sentiment recovered, spot quotes for GO silicon steel edged up, and some mainstream grades saw slight price increases.

As a core raw material for transformers and other power equipment, end-use demand for GO silicon steel showed signs of recovery this week, with procurement efforts intensifying. Although pre-holiday restocking had not yet seen concentrated release, just-in-time procurement volume increased, boosting market transaction sentiment. Currently, leading steel mills in China maintained strong willingness to hold prices firm, traders saw eased shipment pressure, and mainstream merchants primarily held prices stable, with narrowing negotiation margins in actual transactions.

Supply side, steel mill capacity remained stable, and circulating resources in the market stayed within a reasonable range. Although earlier capacity expansion had some impact, demand recovery this week effectively absorbed part of the supply, easing the supply-demand imbalance. The "15th Five-Year Plan" power grid investment implementation brought long-term demand growth, and high growth in transformer exports boosted GO silicon steel demand.

Overall, the GO silicon steel market held up well this week, supported by futures and demand recovery, with short-term positive factors effectively released. Post-holiday cold-rolled GO silicon steel spot prices are expected to remain stable with narrowing price fluctuations. Going forward, attention should be focused on the continued release of downstream demand, steel mill pricing policy adjustments, and futures trends.

Data source disclaimer: Data other than publicly available information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.

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