[SMM Analysis] Low Activity in Market Distribution Channels — Grain-Oriented Silicon Steel Prices May Be in the Doldrums Next Week

Grain-Oriented Silicon Steel Price Dynamics

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

Wuhan 23RK085 grade: 11,300-11,300 yuan/mt

This week, cold-rolled GO silicon steel prices remained generally stable. Wait-and-see sentiment was strong in the market, with overall transactions performing weakly. The industry was widely awaiting the latest pricing policy guidance from mainstream steel mills such as Baowu. Recently, ferrous metals futures were persistently in the doldrums, weighing on silicon steel market sentiment to some extent. Spot prices remained generally stable, with slight room for negotiation on ordinary CGO grade resources.

Price side, current high-permeability Hi-B silicon steel quotes remained relatively firm, while ordinary GO silicon steel quotes were running steadily. Steel mills maintained firm April order prices, providing clear support for the spot market floor. Traders maintained relatively stable quoting sentiment, with limited willingness to sell at low prices.

Demand side, performance continued to diverge. Downstream transformer enterprises still primarily purchased as needed with small restocking orders, and overall purchasing enthusiasm was moderate. Among them, high-grade Hi-B silicon steel orders required for UHV, new energy, and high-end distribution transformers had strong support, with relatively tight circulating resources in the market. Demand for ordinary CGO GO silicon steel was weak, with downstream players mainly digesting earlier inventory, and actual transactions were sluggish.

Currently, overall market inventory levels were not high. Traders operated cautiously, mostly adopting a wait-and-see attitude, with limited purchasing enthusiasm and low activity in market circulation. Considering cost support, demand divergence, and futures trends comprehensively, GO silicon steel spot prices are expected to remain in the doldrums next week, with ordinary grades potentially seeing slight softening, while high-grade resources are expected to stay firm supported by rigid demand.

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