In the third week of May, the Electrical Steel prices for Cold-Rolled Non-Grain Oriented (CRNGO) showcased a stagnancy in their price trend in the Japanese market owing to the consumer's slow purchasing activity. As per market players, suppliers keep their Electrical Steel prices stable temporarily, mainly backed by the higher purchase costs. Due to the ongoing decline in Electrical Steel prices, many buyers are currently embracing a cautious approach and refraining from placing orders. However, downstream customers, especially those in the electrical components industry (such as electric motors, transformers, and generators), are still procuring materials per order. This declining trend is expected to persist in the upcoming week.

In spite of the weakened demand in the downstream sector, Nippon Steel, a major producer of Electrical Steel in Japan, announced in early May a substantial investment of around 1.54 billion dollars in its Setouchi and Kyushu plants. This investment aims to improve production capacity and the quality of non-oriented Electrical Steel sheets. Nippon Steel anticipates a rise in demand for environmentally friendly vehicles in the future due to stricter regulations on carbon emissions and fuel consumption. The strategic investments are planned to be fully executed in the first half of 2027, ensuing in an anticipated manufacturing capacity for non-oriented Electrical Steel sheets for eco-friendly vehicles that is roughly five times the current capacity.

In continuation with the expansion of production capacity for Electrical Steel due to the growing demand for Electric Vehicles (EVs), JFE Steel in Japan has recently announced its decision to proceed with a 341-million-dollar scheme to expand the production capacity of sheets at its Kurashiki plant. This investment aims to meet the surging demand for EVs and will triple the plant's current production capacity. JFE Steel had previously decided to invest 49 billion yen in 2021 to double the capacity of Electrical Steel at the plant by September 2024. With the completion of the second expansion by March 2027, the output capacity will reach three times its current levels. This move demonstrates the company's commitment to meeting the increasing need for Electrical Steel sheets in the context of the rising popularity of EVs.

In 2021, JSW Steel, an Indian Steel manufacturer, and JFE Steel from the Japanese market inked a memorandum of understanding (MoU) to demeanor a joint feasibility study for debuting a producing joint venture in India focused on Cold-Rolled Grain Oriented (CRGO) Electrical Steel. The feasibility study has been completed recently, and both companies have reached a preliminary agreement to establish a 50:50 joint venture. The joint venture will be based in Vijayanagar, Karnataka, India, and capable of manufacturing the entire range of CRGO products. This partnership marks a significant milestone in bolstering India's capacity for producing CRGO Electrical Steel.

According to ChemAnalyst, the demand for Electrical Steel, encompassing both CRGO and CRNGO types, is expected to experience a positive trend in the Asian market. This projection is primarily driven by the robust demand for iron cores used in power transformers, generators, and motors.