[SMM Weekly Summary] Steel mills show strong willingness to raise prices; non-oriented silicon steel prices are expected to strengthen next week

Non-oriented silicon steel price dynamics

Shanghai B50A800 grade: 4,400-4,400 yuan/mt

Guangzhou B50A800 grade: 4,200-4,200 yuan/mt

Wuhan 50WW800 grade: 4,200-4,200 yuan/mt

Shanghai market: This week, spot prices of cold-rolled non-oriented silicon steel in Shanghai held up slightly, with some grades raised by 30-50 yuan/mt. Overall transactions remained sluggish, but Baosteel's October pricing policy, which raised the base price of non-oriented silicon steel by 200 yuan/mt, supported market confidence. According to market feedback, downstream motor enterprises remained cautious in purchasing, maintaining just-in-time procurement and showing low acceptance of high-priced resources. Currently, traders mostly maintained normal inventory levels, with little overall change recently. Overall, cold-rolled non-oriented silicon steel prices in Shanghai are expected to consolidate on a strong note next week, with potential for gains.

Guangzhou market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou firmed slightly, with some grades raised by 10-30 yuan/mt. Transactions recovered modestly, and Baosteel's October pricing policy, which raised the base price of non-oriented silicon steel by 200 yuan/mt, boosted market confidence. Market information showed that downstream manufacturing operating rates rebounded slightly this week, releasing phased restocking demand from end-users. Market trading sentiment recovered modestly, but overall demand recovery remained weak, and end-users showed limited willingness to stockpile on a large scale. This week, futures consolidated lower, and raw material cost support was unstable. Overall, cold-rolled non-oriented silicon steel prices in Guangzhou are expected to consolidate on a strong note next week.

Wuhan market: This week, the cold-rolled non-oriented silicon steel market in Wuhan firmed slightly, with some grades raised by 10-30 yuan/mt, while transactions remained weak. Market feedback indicated that futures drifted lower, providing insufficient support for spot silicon steel prices. However, Baosteel's October pricing policy, which raised the base price of non-oriented silicon steel by 200 yuan/mt, showed strong intent to lift prices. Even though downstream purchasing pace fell short of expectations, market confidence was still boosted. Overall, spot prices of cold-rolled non-oriented silicon steel in Wuhan are expected to consolidate on a strong note next week.

Data source statement:

(All data in this report, other than public information, are derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics (NBS) data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM's internal database models, and are obtained through comprehensive analysis and reasonable inference by the research team. They are for reference only and do not constitute decision-making advice.

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