[SMM Analysis] Intensified Competition Due to Loose Supply, Non-Oriented Silicon Steel May Run Stable Next Week

Non-Oriented Silicon Steel Price Dynamics

Shanghai B50A800 Grade: 4,450-4,450 yuan/mt

Guangzhou B50A800 Grade: 4,380-4,380 yuan/mt

Wuhan 50WW800 Grade: 4,350-4,350 yuan/mt

Shanghai market: In the first week after the holiday, the Shanghai cold-rolled non-oriented silicon steel market was generally stable with slight rise, and market trading activity rebounded steadily. According to market surveys, traders gradually resumed operations after the holiday, but spot transactions were sluggish, with merchants mainly following up on orders left over from before the holiday. Meanwhile, post-holiday arrivals continued to supplement supply, social inventory accumulated steadily, and spot supply was relatively sufficient. Currently, downstream motor and home appliance industries are gradually entering the traditional demand off-season. Combined with supply fluctuating at highs, competition among silicon steel sources of various brands intensified, end-user purchase willingness was weak, and spot prices clearly encountered resistance. Overall, Shanghai cold-rolled non-oriented silicon steel spot prices are expected to remain stable next week.

Guangzhou market: After the holiday, Guangzhou cold-rolled non-oriented silicon steel market prices edged up, with mainstream quotations generally raised by 30-50 yuan/mt, and overall transactions recovered mildly. Futures side, ferrous metals futures recently strengthened amid fluctuations, providing some support to spot market sentiment, but actual spot transaction improvement was insufficient, and price transmission momentum was weak. Downstream end-user raw material inventory was at a reasonably high level, with purchasing only maintaining a just-needed restocking pace. Currently, silicon steel supply was ample, the market supply-demand pattern was loose, and traders focused on destocking and recovering funds as their core operating strategy, with weak bullish sentiment for the market outlook. In summary, local cold-rolled non-oriented silicon steel prices are expected to move sideways next week, with limited upside room.

Wuhan market: This week, the Wuhan cold-rolled non-oriented silicon steel market held steady, with overall trading activity recovering slowly. Market information indicated that local steel traders fully resumed operations after the holiday, but downstream enterprises resumed work at a slow pace, demand side performance was weak, and regional motor manufacturing enterprises showed low purchase willingness, with prominent purchasing-as-needed characteristics. State-owned steel mill ex-factory order prices remained firm, providing strong support for local spot market prices. Currently, a strong wait-and-see atmosphere prevailed in the market, with most traders adopting a strategy of maintaining stable prices for shipments. Overall, Wuhan cold-rolled non-oriented silicon steel spot prices are expected to remain stable for the time being after the holiday.

Data Source Disclaimer:

(Data in this report, other than publicly available information, is derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, NBS data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM's internal database models, through comprehensive analysis and reasonable inference by the research team. It is for reference only and does not constitute decision-making advice.

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