[SMM Weekly Summary] Weak Demand and Flat Baowu Pricing Policy May Keep Grain-Oriented Silicon Steel Prices in the Doldrums Next Week

Grain-Oriented Silicon Steel Price Dynamics

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

Wuhan 23RK085 grade: 11,200-11,200 yuan/mt

This week, China's grain-oriented silicon steel market prices remained stable. Steel mill production was steady, but post-National Day demand fell short of expectations, with project order conversion progressing slowly. Downstream transformer enterprises mainly made just-in-time procurement, showing limited willingness to purchase in bulk, with no concentrated restocking activity, making it difficult for spot transactions to expand volume. The market continued to show structural divergence: low-end conventional grades had ample supply and intense competitive pressure, with insufficient upward momentum in prices; high magnetic induction grades, supported by ultra-high voltage and power grid upgrades, possessed long-term support and moderate price resilience, but the tender implementation and transmission cycle for power grid projects was relatively long, making short-term positives difficult to materialize and providing limited boost to spot cargo.

Baowu released its November grain-oriented silicon steel futures prices, with base prices held flat, signaling the steel mill's stance of maintaining stability—neither actively pushing prices up nor intending to let the market weaken quickly—also reflecting the leading steel mill's cautious attitude toward the current weak demand. Structural supply pressure still exists, demand recovery is below expectations, and the market lacks clear drivers for price changes. Overall, with weak demand support combined with Baowu's flat price guidance, China's grain-oriented silicon steel prices are expected to remain stable next week.

Data Source Statement:

(All data in this report, other than publicly available 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, 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 statement content based on actual circumstances.