[SMM Weekly Wrap-up] Cost Support Further Weakens, Non-Oriented Silicon Steel Price Cuts Expected Next Week

Non-Oriented Silicon Steel Price Dynamics

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

Guangzhou B50A800 Grade: 4,250-4,250 yuan/mt

Wuhan 50WW800 Grade: 4,300-4,300 yuan/mt

Shanghai Market: This week, spot prices for cold-rolled non-oriented silicon steel in the Shanghai market remained in the doldrums, with overall transactions sluggish. Market feedback showed that futures continued to weaken this week, dragging down market sentiment. Supply pressure for non-oriented silicon steel remained significant, and traders showed a strong willingness to sell. However, downstream motor enterprises mainly purchased as needed, lacking willingness to restock. On the whole, spot prices for cold-rolled non-oriented silicon steel in the Shanghai market are expected to remain in the doldrums next week, with some room for price cuts.

Guangzhou Market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou trended weak, with mainstream grades lowered by 30 yuan/mt and poor transaction performance. Market feedback indicated that HRC futures weakened this week, and the off-season led to poor transactions, prompting some traders to sell at reduced prices. On the whole, there is still some room for price cuts in the Guangzhou market for cold-rolled non-oriented silicon steel next week.

Wuhan Market: This week, the cold-rolled non-oriented silicon steel market in Wuhan remained temporarily stable, with the trading atmosphere gradually turning sluggish. Market feedback noted that downstream demand remained persistently weak, but ex-factory costs at state-owned steel mills were firm, leading traders to mostly sell at stable prices. However, due to high purchase prices, traders' own willingness to purchase also declined. On the whole, spot prices for cold-rolled non-oriented silicon steel in the Wuhan market are expected to remain in the doldrums next week.

Data Source Statement:

(Data other than publicly available information in this report are obtained from publicly available data (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, NBS data, customs import and export data, various data released by major associations and institutions), market communication, and the SMM internal database model. They are derived through comprehensive analysis and reasonable inferences by the research team, for reference only, and do not constitute decision-making advice.

Shanghai Metals Market reserves the right to the final interpretation of this statement and to adjust and amend its content based on actual circumstances.)