[SMM Analysis] Next week, the price of grain-oriented electrical steel may remain in the doldrums, and the process of gradual decline has not ended

Price Dynamics of Grain-Oriented Electrical Steel

Shanghai B23R085 grade: 14,200-14,400 yuan/mt

Wuhan 23RK085 grade: 14,100-14,300 yuan/mt

This week, the spot price of cold-rolled grain-oriented electrical steel showed a downward trend. The market transaction atmosphere remained relatively sluggish, lacking sufficient vitality to support a price rebound. From a fundamental perspective, the ordering costs of state-owned steel mills have decreased to a certain extent, providing a positive cost-side signal for the market. However, the purchasing pace of traders remains slow. Regarding ordering plans for July, most traders are still in a wait-and-see stance and are not rushing to place orders. Meanwhile, after a prolonged period of continuous decline, the prices of some mainstream grades in the market have begun to show significant adjustments, further exacerbating the wait-and-see sentiment in the market.

In terms of transactions, the overall number of inquiries in the market is relatively low. Downstream enterprises have weak purchase willingness, and actual transaction situations have not shown significant improvement. The performance of the demand side remains at a general level. Faced with the current market situation, merchants generally adopt a cautious wait-and-see attitude towards the future market, not daring to easily adjust their quotations or increase inventory.

Looking at the subsequent trend, due to the lack of confidence among market participants in the current market environment and the widespread belief that prices will still undergo a prolonged period of decline, it is difficult to expect a substantial reversal in the short term. Considering the above factors comprehensively, it is expected that the price of cold-rolled grain-oriented electrical steel will mainly operate in a state of doldrums next week, with relatively limited price fluctuations.