[SMM Analysis] Top-Tier Players Drove Prices Up, GO Silicon Steel Prices Held Up Well This Week

GO Silicon Steel Price Dynamics

Shanghai B23R085 grade: 11,800-11,800 yuan/mt

Wuhan 23RK085 grade: 11,600-11,600 yuan/mt

This week, cold-rolled GO silicon steel spot prices were raised by 100 yuan/mt overall, with market transactions performing moderately. According to market feedback, ferrous metals futures fluctuated and pulled back this week, weakening raw material cost support to some extent, which suppressed spot market sentiment. However, Baowu's June pricing policy raised the GO silicon steel base price by 200 yuan/mt, with an additional 100 yuan/mt increase for grades 75 and above, boosting market sentiment and strengthening state-owned resource quotations.

At the current stage, market circulation pace remained slow. Traders generally maintained strong risk-control sentiment. Considering the sluggish recovery in downstream demand, merchants were cautious about restocking, mostly consuming existing inventory, and market circulating inventory stayed within a reasonable range. Downstream transformer industry overall maintained stable operations. Rigid demand from State Grid and large-scale infrastructure projects was steadily released, but civilian and small-to-medium-sized transformer enterprises faced insufficient orders. Their procurement pace was relatively conservative, basically purchasing on demand, with few instances of large-volume concentrated procurement, and overall demand stimulus remained limited.

Overall, the current bearish factors in the market were mainly weakening futures and insufficient end-use demand, while bullish support came from steel mills' strong willingness to push prices higher and major projects commencing as planned, with bulls and bears counterbalancing each other. Cold-rolled GO silicon steel spot prices are expected to remain temporarily stable next week, with no obvious change trend for the time being.

Data Source Disclaimer: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.

Note: This article is an original article of this official account. For reprinting, whitelisting, cooperation, or other needs, please contact us. Without permission, the above content shall not be reprinted, modified, used, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to third parties in any other form, nor shall third parties be licensed to use it. Otherwise, once discovered, SMM will take legal measures to pursue infringement liability, including but not limited to claiming contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses.