[SMM Weekly Summary] Off-season demand continues to weaken, and non-oriented silicon steel prices have downside room next week.

Non-Oriented Silicon Steel Price Dynamics

Shanghai Grade B50A800: 4,380-4,380 yuan/mt

Guangzhou Grade B50A800: 4,280-4,280 yuan/mt

Wuhan Grade 50WW800: 4,300-4,300 yuan/mt

Shanghai market: This week, the spot price of cold-rolled non-oriented silicon steel in the Shanghai market was in the doldrums, with medium and low grades generally dropping 20-50 yuan/mt, while new energy grades fell more significantly, declining 300-500 yuan/mt. Overall market transaction performance was weak. Market feedback indicates that this week, HRC futures retreated after rapid rise, the average price shifted downward, and cost support weakened. Currently, the market is in a situation of strong supply and weak demand, traders have a strong willingness to sell, downstream motor enterprises primarily purchase as needed, and demand performance is average. Overall, we expect that the spot price of cold-rolled non-oriented silicon steel in the Shanghai market next week still has some downside room.

Guangzhou market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou was in the doldrums, with mainstream grades adjusted down by 50 yuan/mt, and the trading atmosphere was weak. Market feedback indicates that this week, HRC futures fluctuated downward, exerting a bearish influence on the market. Fundamentally, off-season orders were insufficient, and due to the high cost of hot-rolled base plates for non-oriented silicon steel, some producers cut production proactively. With clear support from the cost side, the possibility of a further deep decline in non-oriented silicon steel is relatively small. Overall, we expect that the spot price of cold-rolled non-oriented silicon steel in the Guangzhou market next week still has slight downside room.

Wuhan market: This week, the cold-rolled non-oriented silicon steel market in Wuhan weakened somewhat, slightly adjusted down by 20 yuan/mt, and the trading atmosphere gradually became sluggish. Market feedback indicates that futures retreated after rapid rise, cost support weakened, which had a negative impact on the market. Downstream wait-and-see sentiment was strong, and purchase enthusiasm was moderate. However, market resource circulation is limited, and subsequent price downside room is limited. Overall, we expect that the spot price of cold-rolled non-oriented silicon steel in the Wuhan market next week may remain in the doldrums.

Data Source Statement:

(All data in this report, except for public information, are 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, etc.), market communication, and are derived from comprehensive analysis and reasonable inference by the research team based on SMM internal database models. They are for reference only and do not constitute decision-making advice.

SMM has the final right of interpretation for the terms of this statement and reserves the right to adjust and amend the content of this statement based on actual circumstances.