[SMM Analysis] Insufficient willingness to purchase, next week's non-oriented electrical steel prices in Shanghai are still expected to decline

Price Dynamics of Non-oriented Electrical Steel

Shanghai B50A800 grade: 4,850-4,900 yuan/mt

Guangzhou B50A800 grade: 4,400-4,500 yuan/mt

Wuhan 50WW800 grade: 4,600-4,700 yuan/mt

Shanghai Market:

This week, the prices of cold-rolled non-oriented electrical steel in Shanghai generally declined, with no improvement in overall market transactions. The ferrous metals series futures market fluctuated downward slightly this week, leading to insufficient market confidence and a relatively pessimistic outlook. In terms of fundamentals, the inventory of non-oriented electrical steel in the trade circulation sector in Shanghai was low, and due to poor expectations among traders, actual purchases further decreased. Meanwhile, the market was in the off-season for demand, with terminal users purchasing cautiously. Downstream industries such as automotive and home appliances mainly purchased non-oriented electrical steel as needed, lacking the motivation to restock. Looking ahead, market transactions are expected to remain sluggish, with insufficient willingness to purchase among downstream users. It is anticipated that non-oriented electrical steel prices in Shanghai will continue to decline next week.

Guangzhou Market:

This week, the price center of cold-rolled non-oriented electrical steel in Guangzhou shifted downward, with a sluggish trading atmosphere in the spot market. The ferrous metals series futures market was in the doldrums this week, further weakening market confidence. In terms of fundamentals, the current situation of weak supply and demand in the market is quite evident. Most traders expect the market to be in a downtrend, deliberately maintaining low inventory and lacking the willingness to restock. Meanwhile, influenced by the traditional off-season, the purchase willingness of downstream terminal users is low, and most transactions in the market are concluded at lower prices. Looking ahead, the current market presents a pattern of weak supply and demand. Due to the lack of substantial positive stimuli, bearish sentiment still exists in the market. It is expected that non-oriented electrical steel prices in Guangzhou will continue to be in the doldrums next week.

Wuhan Market:

This week, the spot prices of cold-rolled non-oriented electrical steel in Wuhan remained stable, with average market transactions. In terms of fundamentals, there was no increase in the supply of non-oriented electrical steel resources from state-owned enterprises, and the spot supply of medium and low grades remained tight. However, the market was characterized by a distinct off-season, with weak market demand and limited new orders. Downstream users mainly purchased as needed, and there were no significant changes in the supply and demand fundamentals recently, with traders barely managing to stabilize prices and sell goods. Looking ahead, it is difficult to improve the activity of market transactions. Traders and downstream terminal users generally hold a wait-and-see sentiment. It is expected that non-oriented electrical steel prices in Wuhan may be in the doldrums next week.