Chinese NGO electrical steel prices remain downward

BEIJING (Asian Metal) 27 Apr 23 - Chinese non-grain oriented electrical steel suppliers further reduced their prices this week discouraged by the soft demand from downstream industries.Asian Metal Copyright The trader plans to further cut the price and predicts that Chinese NGO electrical steel prices would go down by another RMB50t USD7t in the coming week on weak demand.Asian Metal Copyright The mainstream prices of NGO electrical steel B50A470-A 0.5mm*1,200mm*C from Baosteel stand at RMB5,850-5,900/t (USD845-852/t) D/P in warehouse Shanghai at present, and those of NGO electrical steel SG50W800 0.5mm*1,200mm*C from Shagang Steel hover at RMB5,100-5,150/t (USD737-744/t) D/P in warehouse Zhangjiagang, both down by RMB100/t (USD14/t) compared with those of last week. Insiders expect Chinese NGO electrical steel prices to decrease by another RMB50/t (USD7/t) in the coming week on weak demand.

A distributor of NGO electrical steel in Shanghai with a regular sales volume of about 3,000tpm quotes RMB5,900/t (USD852/t) D/P in warehouse Shanghai for NGO electrical steel B50A470-A 0.5mm*1,200mm*C from Baosteel with no concessions at present, down by RMB100/t (USD14/t) from last week. "We further cut the price by RMB100/t (USD14/t) this week dragged by customers' slow buying activities after the decrease of RMB100/t (USD14/t) last week," explained the trader.Asian Metal Copyright "We also followed other traders to further reduce the price by RMB100t USD14t this week to promote sales after the decrease of RMB100t USD15t last week," said the trader.Asian Metal Copyright According to him, expecting the price to go down further, many customers just hold wait-and-see attitudes at the moment and have no purchase plans. He failed to conclude any deals yet this week and last sold about 50t one week ago at RMB6,000/t (USD867/t). The trader intends to further decrease the price and predicts that Chinese NGO electrical steel prices would drop by another RMB50/t (USD7/t) in the coming week on soft demand.

With a sales volume of about 3,000t in March, which may keep stable this month, the trader sold around 8,000t in Q1 of this year and about 45,000t last year. They have an inventory of about 1,000t in hand now, down from around 1,500t last month.

A Suzhou-based NGO electrical steel trader told his price for NGO electrical steel SG50W800 0.5mm*1,200mm*C from Shagang Steel hovers at RMB5,150/t (USD744/t) D/P in warehouse Zhangjiagang without any discounts for the time being, down by RMB100/t (USD14/t) compared with that of last week. "We also followed other traders to further reduce the price by RMB100/t (USD14/t) this week to promote sales after the decrease of RMB100/t (USD15/t) last week," said the trader.Asian Metal Copyright With a sales volume of about 3,000t in March, which may keep stable this month, the trader sold around 8,000t in Q1 of this year and about 45,000t last year.Asian Metal Copyright According to him, seeing the continuous price decrease these days, customers just purchase materials upon orders before May Day holiday and his sales performance keeps poor. He just sold about 50t this week at RMB5,150/t (USD744/t) and last sold about 70t last week at RMB5,250/t (USD758/t). The trader plans to further cut the price and predicts that Chinese NGO electrical steel prices would go down by another RMB50/t (USD7/t) in the coming week on weak demand.

Based on the regular sales volume of about 4,000tpm, the trader sold around 4,000t last month and expects a stable sales amount this month. Having a stockpile of about 1,000t in hand now, similar to that of last month, they sold around 11,000t in Q1 of 2023 and about 50,000t in 2022.

.Asian Metal Copyright Having a stockpile of about 1,000t in hand now, similar to that of last month, they sold around 11,000t in Q1 of 2023 and about 50,000t in 2022Asian Metal Copyright