In the first week of July, the price of Electrical Steel shows an overall stable trend as the demand from the downstream construction and energy transmission sector remains flat. The feedstock iron ore prices decreased slightly as the overseas Chinese steel-making activity reduced. Meanwhile, the energy cost has been low in Major European countries except in Italy, producing downward pressure on the Electrical Steel production cost. The buyers are in a wait-and-watch situation in the European Electrical Steel market as the price change is expected due to various factors such as plant shutdowns and increased feedstock Silicon metal production across Europe and overseas markets.

The price of feedstock Iron ore and Silicon metal has been slightly declining across Europe and the overseas Chinese market, implementing a downward pressure on the Electrical Steel prices. The steel-making activity in the overseas Chinese steel manufacturing mills has declined as the production activity reduced by up to 30 to 50% in the Tangshan, a major steel-making center in China. This put downward pressure on the feedstock iron ore price. Additionally, the feedstock of Electrical Steel, such as silicon metal price, has also shown a similar declining trend as the operation rate increases in the silicon metal Plants in Yunnan, China, due to the arrival of a high-water period. These factors declined the prices of the feedstock Iron Ore and Silicon metal which provoked the Electrical Steel manufacturing mills to lower their prices in the European spot market.

In Europe, production cuts were observed due to flat demand from the downstream industries. ArcelorMittal France, a major European Electrical Steel producer, has shut down its steel-making operations at the For-sur-mer plant in southern France. The plant shutdown was forced due to rising concern for workers’ health and safety due to high dust emissions containing carcinogenic substances that are making the working environment hazardous for employees’ health. Hungary-based steel-making industry, Dunaferr, has also implemented an extension on the shutdown of plants to prevent the rising concern for air pollution in Europe, halting the increase in the price of Electrical Steel. Moreover, Salzgitter, a major German steel maker, has also been provoked to implement force majeure after flooding in major regions in Germany. The production cut has kept the Electrical Steel market on a stable trend as the demand from the downstream market and buyers have shown a pessimistic sentiment in Europe.

Meanwhile, the demand from the downstream industries has been sluggish as the construction industry plunged amid higher interest rates and lower project investment across the European spot market, which created a negative market situation provoking the buyers from placing large orders. Sweden has been hit by the lowest construction activity of about 13% in June end which led to a decline in the consumption of Electrical Steel in the European spot market.

According to ChemAnalyst, the price of Electrical Steel will increase in the upcoming month as the feedstock silicon metal price tends to rise amid high consumption from the downstream automobile industry. The feedstock iron ore price will increase as steel demand is going to be on a rapid surge in the European as well as the overseas Indian and Chinese markets. The power distribution sector will show significant growth, leading to increased consumption of Electrical Steel in the European spot market.