Shougang Group: The market demand for oriented silicon steel will continue to experience significant growth for a considerable period of time.

On July 8th, Shougang Group stated during a conference call regarding the supply and demand situation in the silicon steel industry that the market demand for grain-oriented silicon steel, as an important soft magnetic material for the power system, will continue to grow at a relatively high rate for a considerable period of time. Based on the confirmed growth in demand, domestic grain-oriented silicon steel production capacity has also been rapidly increasing in recent years, with overall production capacity expected to continue growing until 2026. Overall, both the supply and demand sides of grain-oriented silicon steel are growing, and changes in the development of the power industry will drive the upgrading of grain-oriented silicon steel towards "efficiency, high-end, and green". As for non-grain oriented silicon steel, it is projected that domestic total demand will be around 15 million tons by 2026, with significant growth expected in new energy vehicles and new quality production areas represented by humanoid robots, low-altitude economy, and high-end intelligent equipment. On the supply side, production capacity of non-grain oriented silicon steel is continuing to grow. Overall, the oversupply situation of non-grain oriented silicon steel has not changed, and there is a mismatch in the supply and demand structure, which may accelerate the clearance of outdated production capacity.