[SMM Weekly Review] Limited Improvement in Market Demand; Non-oriented Silicon Steel Prices May Consolidate on a Strong Note 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, Shanghai cold-rolled non-oriented silicon steel spot prices held up slightly, with some grades up 30-100 yuan/mt, while overall transactions still fell short of expectations. Market feedback indicates HRC futures drifted lower this week, weakening cost support for non-oriented silicon steel, and the market widely reflected that overall downstream demand was hard-pressed to meet expectations. Entering September, downstream purchasing remained cautious, and Baosteel's October price policy raising non-oriented silicon steel by 200 yuan/mt also failed to boost market confidence. Moreover, the easing of supply-demand imbalance still requires market validation, with no clear improvement visible in the short term. Overall, Shanghai cold-rolled non-oriented silicon steel prices are expected to consolidate on a strong note next week.

Guangzhou market: This week, Guangzhou cold-rolled non-oriented silicon steel market remained stable, with most grade quotes unchanged and transaction performance recovering slightly. Market news showed Baosteel's October price policy was released, raising non-oriented silicon steel Ex-works prices by 200 yuan/mt, strengthening traders' willingness to hold prices firm, but they remained largely wait-and-see on the outlook and cautious in purchasing. Entering September, downstream manufacturing demand recovered slowly, making it difficult to support price increases. Overall, Guangzhou cold-rolled non-oriented silicon steel prices are expected to consolidate on a strong note next week.

Wuhan market: This week, Wuhan cold-rolled non-oriented silicon steel market firmed slightly, with some grades up 30-50 yuan/mt, while transaction performance was weak. Market feedback showed futures drifted lower, providing insufficient support for silicon steel spot prices, but Baosteel's October price policy raised the non-oriented base price by 200 yuan/mt, increasing purchase costs and strengthening traders' willingness to hold prices firm. However, downstream demand lacked improvement, and price increases still need to wait for demand to recover. Overall, Wuhan cold-rolled non-oriented silicon steel spot prices are expected to consolidate on a strong note next week.

Data Source Statement:

(All data in this report, except for 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 produced 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 reserves the final right to interpret the terms of this statement and the right to adjust and modify the content of the statement based on actual circumstances.