[SMM Analysis] End-users Generally Remain Cautious, Shanghai Grain-Oriented Electrical Steel Prices May Remain Stable Next Week

Price Trends of Grain-Oriented Electrical Steel

Shanghai B23R085 grade: 14,300-14,500 yuan/mt

Wuhan 23RK085 grade: 14,100-14,600 yuan/mt

This week, the market price of grain-oriented electrical steel in Shanghai remained stable. The overall trading atmosphere was sluggish, with transaction activity falling far short of expectations. There was a strong wait-and-see sentiment, making it difficult for the market volume of grain-oriented electrical steel to increase.

In terms of fundamental conditions, the supply of grain-oriented electrical steel resources is relatively loose. In particular, private steel mills are facing fierce sales competition and are actively vying for a limited market share, resulting in the market price being unable to obtain effective support. The supply pressure of grain-oriented electrical steel resources from state-owned enterprises is relatively small, and their overall inventory is at a low level, making the prices of grain-oriented electrical steel resources from state-owned enterprises relatively firm. Despite the general downward trend in market prices, they can still maintain relatively stable prices.

Looking ahead to the subsequent market, demand release remains insufficient, and downstream end-users generally maintain a cautious wait-and-see attitude. In summary, it is expected that the price of grain-oriented electrical steel in Shanghai may remain stable next week, and the market will continue to seek a new balance amid the tug-of-war between supply and demand and cautious sentiment.