[SMM Analysis] Futures prices rose, stabilizing market confidence. Next week, Shanghai's non-oriented electrical steel market will operate steadily for the time being.

Price Dynamics of Non-oriented Electrical Steel

Shanghai, Grade B50A800: 4,800-4,900 yuan/mt

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

Wuhan, Grade 50WW800: 4,550-4,650 yuan/mt

Shanghai Market:

This week, the price of cold-rolled non-oriented electrical steel in Shanghai remained stable, with overall market transactions being average. Market feedback indicates that futures market prices rose significantly this week, but electrical steel traders remained cautious, focusing on steady pricing and shipments. Competition in the non-oriented electrical steel market is fierce, making it difficult to boost prices. There is significant ordering pressure for non-oriented electrical steel in July, with some manufacturers offering substantial discounts, prompting traders to purchase in small quantities. Downstream demand is in the off-season, with motor enterprises primarily replenishing inventory as needed. In summary, it is expected that the price of non-oriented electrical steel in Shanghai will remain stable next week.

Guangzhou Market:

This week, the price of cold-rolled non-oriented electrical steel in Guangzhou remained temporarily stable, with market transactions being sluggish. Futures market prices rose significantly this week, but demand for non-oriented electrical steel spot cargo remained weak, with traders generally cautious and pessimistic. Currently, state-owned enterprises primarily supply directly to end-users, limiting market circulation. However, there is significant ordering pressure for state-owned enterprises in July, with some room for actual acceptance prices to decline discreetly. Cost support has weakened, and traders have insufficient reluctance to budge on prices. Affected by the traditional off-season, downstream motor enterprises continue to replenish inventory as needed, with overall transactions unlikely to improve. In summary, weak demand and cost reductions offset the significant rise in futures market prices, and it is expected that the price of non-oriented electrical steel in Guangzhou will remain in the doldrums next week.

Wuhan Market:

This week, the spot price of cold-rolled non-oriented electrical steel in Wuhan remained stable, with overall market transactions being average. HRC futures continued to strengthen this week, but the spot price of non-oriented electrical steel remained relatively independent, without showing any increase. Acceptance quotes for some state-owned resources have decreased, leading to a slight weakening of previous spot prices. However, the actual procurement demand in the market remains sluggish, with end-users showing low purchase willingness. The market trading atmosphere is weak, and traders generally hold a cautious wait-and-see sentiment towards the future market, making it difficult for prices to rebound. In summary, it is expected that the price of non-oriented electrical steel in Wuhan may remain stable next week.