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Prices of GO Electrical Sheets Increase Also in China
In the world, a country where a price increase of steel products is most difficult is China. It is because all steel products are in a state of oversupply and sales competition is sever each other among steel mills. There were some steel items of which prices rose at one point but prices of most steel products have still been on a slow decline and sluggish for several years until now. In addition, the Chinese market conditions of steel products have an impact on all the countries of the world, and prices of steel products are at the very cheap level in those countries except the USA caused by China's cheap export prices of steel products.

Under such circumstances, prices of grain-oriented (GO) electrical steel sheets are only exceptional. Since the beginning of this year, prices of GO electrical sheets to high-grades have begun to rise having started from the Indian market, and they rose by $300 there in the first half of the year. In Middle East, they rose by $250 and by $100-200 in Europe and the USA. Possibly due to a worldwide increase in price, prices of GO electrical sheets are rising at long last in China as well amid the situation that prices of all other steel products remain flat or are dropping slightly.

Baoshan Iron & Steel (Baosteel) of that country had raised its prices of GO electrical sheets to high grades by 400 CNY ($65) in total for 3 consecutive months since May, and Wuhan Iron & Steel (WISCO) raised its list prices of GO electrical sheets by 600 CNY ($98) in 2 months. However, small and medium-sized customers, especially distributors and so on are said to be individually forced to accept an increase in price by 700 CNY ($114) by those mills.

It is certain that a production capacity of GO electrical sheets exceeds demand for them. Meantime, when limiting those to high-grade products, manufacturers being producible are confined in the world, and naturally, supply of them is also limited. In Europe, there is information that supply of CGO (conventional GO) electrical sheets being for general use is sufficient while that of high-grade ones runs short. For this reason, it is reported that some manufacturer was talked about withdrawal from the world of GO electrical sheets but has made a comeback. In case of Japan, as negotiations for major customers were already finalized for shipment of the first half of the year, the Japanese mills' quantity to be able to supply them is limited hereafter. The Japanese mills do not know to what extent prices are rising in the Indian market where those rose by $300 in the first half of the year. It is because they do not have information on it due to no negotiations for India with no exportable quantity.

In the Chinese market of GO electrical sheets, from a market-share battle between Baosteel and WISCO, prices had spiraled downward. The Japanese mills wary about an antidumping case from both companies and have exported limiting the highest quality of products which Chinese mills are unable to produce. The time seems to have come that in China as well, production and demand seem to begin to have balanced as far as high-grade products are concerned to such an extent that the major mills are able to raise their prices. In the Chinese market, only prices of GO electrical sheets are rising.

At present, negotiations on highest-grade products between Chinese major transformer manufacturers and the Japanese mills begin to start. Such negotiations are positioned for a price increase of GO electrical sheets to culminate. It is said that bid prices are already raised by $50 and a price rise is certain. Attention is paid to whether major transformer manufacturers will accept an increase in price by $100-200 of the world level.
last modified : Fri 25 Jul, 2014 [11:11]
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