[SMM Analysis] Next week, Shanghai's oriented electrical steel market will remain in the doldrums, with relatively small possibility of volatile prices.

Price Dynamics 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 price of cold-rolled grain-oriented electrical steel in Shanghai remained stable, with market transactions remaining sluggish and showing no signs of significant improvement. The ferrous metals series futures market fluctuated downward slightly this week, dampening market participants' confidence and leading to widespread pessimistic expectations. This has also had a negative impact on the grain-oriented electrical steel market, with merchants becoming increasingly cautious in their operations.​

From a fundamental perspective, in the trade and circulation sector, the inventory of grain-oriented electrical steel in Shanghai is at a relatively low level. Given the current poor market expectations, traders have further reduced their actual purchases to mitigate inventory risks. With the market currently in an off-season for demand, end-users are extremely cautious in their procurement activities. The downstream demand for grain-oriented electrical steel is mainly concentrated in fields such as transformers. Although the demand for transformers from the power industry is relatively stable, it lacks the momentum for large-scale restocking due to the overall economic environment and market expectations. Other fields, such as electronic equipment, have also adopted a purchasing-as-needed strategy for grain-oriented electrical steel based on the current market situation.​

Looking ahead to the subsequent market, with market transactions remaining persistently sluggish and downstream enterprises showing insufficient willingness to purchase, this situation is unlikely to change in the short term. Considering various factors comprehensively, it is expected that the Shanghai grain-oriented electrical steel market will maintain a weak and stable operation trend next week, with relatively small possibilities of volatile price movements.