Electrical Steel Prices Reach USD 5,362/MT in USA in Q2 2026 Amid Global Supply Shifts

02-Sep-2026

Electrical steel is a specialty steel tailored for electromagnetic properties, essential in transformers, motors, and generators. It is known for its high efficiency, low core loss, and crucial role in energy-efficient devices. Electrical steel prices are influenced by global iron ore costs, energy expenses, manufacturing demand, and technological advancements.

Global Market Overview:

Globally, the electrical steel market was valued at USD 44.1 Billion in 2025. Market projections indicate steady growth, with the industry expected to reach USD 67.2 Billion by 2034, showcasing a compound annual growth rate (CAGR) of 4.64% during 2026-2034. Increasing adoption in renewable energy and electric vehicle industries drives the electrical steel price trend. Expansions in infrastructure development and energy efficiency regulations are pivotal to sustaining growth.

Electrical Steel Price Trend Q2 2026:

Regional prices (USD per MT) and QoQ changes Q2 2026 vs Q1 2026:

Region	Price (USD/MT)	QoQ Change	Direction
USA	5,362	-3.32%	↓
China	1,051	-2.23%	↓
India	1,974	-4.43%	↓
Germany	1,690	-5.56%	↓
France	1,799	-4.12%	↓

To access real-time prices Request Sample

What Moved Prices:

USA:

In Q2 2026, electrical steel prices in the USA fell to USD 5,362/MT due to tempered demand in the transformer and electric motor sectors. This downturn was further compounded by abundant domestic supply, which satisfied manufacturers' needs without pressuring prices upward.
Reduced need for restocking contributed to low transaction activity across key distribution channels. Declining raw material expenses and competitive supplier strategies lowered offers, as highlighted in the electrical steel price chart displaying a continuous decline.

China:

During Q2 2026, electrical steel prices in China decreased to USD 1,051/MT, with downstream sectors such as electric vehicle manufacturing showing limited demand. Despite steady domestic production, purchasing interest diminished as inventories met current consumption.
Suppliers maintained robust production levels, ensuring sufficient supply and minimizing price pressure. Competitive pricing among local producers further drove down values, while a lack of export momentum reinforced the quarterly dip in prices.

India:

In Q2 2026, electrical steel prices in India receded to USD 1,974/MT with stable production in the transformer and motor industries. Inventory management strategies by buyers limited new orders, aligning with stable supplier output.
Consistent domestic production supported availability, keeping supply pressure low and regional prices steady. Declines in input costs permeated through to lower offers, helping suppliers maintain contracts with core clients under the subdued purchasing environment.

Germany:

In the second quarter of 2026, electrical steel prices in Germany dropped to USD 1,690/MT as industrial demand for renewable technology components moderated. Buyers managed inventories carefully, reducing the need for new acquisitions despite steady factory activities.
Stable European output bolstered ample supply, alleviating any concerns about distribution bottlenecks. Reduced input costs filtered into market dynamics, encouraging suppliers to offer flexible pricing to retain contract engagements amid cautious consumption trends.

France:

In Q2 2026, electrical steel prices in France fell to USD 1,799/MT, driven by moderated demand from the automotive and electrical equipment sectors. Declines in global input costs coincided with balanced domestic production to ease price trajectories.
Adequate stock levels lessened procurement urgency across industrial buyers. Market dynamics combined with competitive pricing initiatives from suppliers fostered a progressive softening of prices in line with moderate manufacturing activities across the quarter.

Drivers Influencing the Market:

Several factors continue to shape electrical steel pricing and market behavior:

Renewable Energy and Electric Vehicle Adoption: Advancements in renewable energy solutions and increasing electric vehicle production bolster baseline demand for electrical steel. Per the IEA's Global EV Outlook 2026, global electric car sales exceeded 20 Million units in 2025, a 20% year-on-year rise, with one in four new cars sold worldwide being electric. As these high-efficiency sectors expand, they drive fluctuations in electrical steel price index determination, with regulatory and innovation shifts steering procurement patterns.
Raw Material and Processing Costs: The production expenses for electrical steel are heavily influenced by the cost of raw materials, particularly iron ore and coal. The decline in coal prices over recent quarters has eased pressure on manufacturers’ production costs, thereby impacting the electrical steel price index across various regions.
Energy Consumption in Manufacturing: Electricity and natural gas costs are critical in the energy-intensive production of electrical steel. Rising energy prices significantly affect manufacturing expenses. These rising benchmarks are vital considerations for producers, as energy expenditure drives the overall price structure for electrical steel in the market.
Shipping and Transportation Costs: The global trade of electrical steel heavily relies on container shipping markets across major routes. High freight rates, as captured by logistics indices, can elevate the overall cost for importers, especially in regions like Asia and Europe, impacting the final electrical steel price chart.
Regulatory and Compliance Costs: Compliance with evolving environmental policies and safety regulations increases the operational costs for electrical steel manufacturers. These costs are often reflected in pricing adjustments. Stringent regulatory environments necessitate careful cost management by industry participants.
Trade Agreements and Foreign Exchange Fluctuations: Tariff policies, trade agreements, and currency movements can significantly affect the cost competitiveness of electrical steel. Changes in currency value against the US dollar can adjust procurement costs for buyers in different regions, influencing market dynamics.

Recent Highlights & Strategic Developments:

Recent strategic moves within the industry further illustrate evolving dynamics:

In February 2026, Proterial allocated USD 80 Million to set up India's inaugural amorphous electrical steel production plant in Sri City, Andhra Pradesh as part of the PLI initiative for specialty steel. The facility was designed to generate 30,000 Tons each year in its first phase, with operations anticipated to start in October 2026, backed by increasing transformer demand and the growth of energy-intensive data centers.
In August 2025, India’s JSW Steel and Japan’s JFE Steel revealed a collaborative investment of USD 669 Million focused on enhancing cold-rolled electrical steel production at two JSW Steel plants in India. This strategic investment highlighted the increasing local and regional need for premium electrical steel, especially in automotive, renewable energy, and industrial sectors.

Outlook & Strategic Takeaways:

Looking ahead, the electrical steel market is expected to grow steadily through 2034, driven by increased usage in automotive, renewable energy, and industrial applications. Price movements will depend on energy costs and raw material supply chains, fundamentally influencing the electrical steel price forecast.

To navigate this complex landscape, stakeholders should:

Monitor Regional Price Differentials: Track quarterly price movements in the USA, China, India, Germany, and France to identify optimal procurement strategies. Compare landed costs against prevailing contract rates before finalizing procurement volumes.
Assess Freight Market Developments: Keep a close eye on container freight rate trends across key trading routes. Negotiate flexible logistics contracts that can adjust according to current spot market conditions.
Evaluate Downstream Demand Indicators: Monitor demand across key sectors such as automotive and renewable energy. Align inventory cycles with these demand trends to prevent overstocking and manage supply efficiently.
Review Raw Material and Energy Cost Trends: Stay informed on trends affecting iron ore and coal, as well as electricity costs, as these directly impact the electrical steel price per MT. Use this data to strategize procurement and inventory decisions.
Strengthen Currency Exposure Management: Utilize financial instruments to hedge against currency volatility that affects import/export costs. Ensure synchronization between financial operations and procurement to mitigate risks effectively.
Explore Emerging Application Segments: Investigate potential growth areas such as advanced transformer manufacturing and energy-efficient motors. Consider partnerships to explore new technologies and product applications.

Subscription Plans & Customization:

IMARC offers flexible subscription models to suit varying needs:

Monthly Updates: 12 deliverables/year
Quarterly Updates: 4 deliverables/year
Biannual Updates: 2 deliverables/year

Each includes detailed datasets (Excel + PDF) and post-report analyst support.

Speak to an Analyst

Get in Touch With Us

UNITED STATES

Phone: +1-201-971-6302

INDIA

Phone: +91-120-433-0800

UNITED KINGDOM

Phone: +44-753-714-6104

Email: [email protected]

Client Testimonials

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

IMARC did an outstanding job in preparing our study. They were punctual and precise, delivering all the data we required in a clear and well-organized format. Their attention to detail and ability to meet deadlines was impressive, making them a reliable partner for our project.

I wanted to express my sincere appreciation for your efforts in handling this matter. Your dedication and commitment have truly been commendable. It is evident that you have put in a tremendous amount of hard work and expertise into resolving the issues at hand. I would also like to take this opportunity to inform you that we are greatly interested

Overall, the deliverable was well organized and my experience with the project team was good. In particular, I appreciated how they responded when I requested additional information and the Japanese version.

The IMARC team were extremely professional and very cooperative. The team were also extremely flexible in making changes and modifications wherever required. The entire experience right from project kick-off to after sales support was fruitful and smooth.

I’d like to express my gratitude for the work you accomplished with the industry report. The way you responded to the requirements and delivered under tight timelines shows your expertise, exceptional work ethic and commitment to your customer’s success. The entire team and company are incredibly thankful for your dedication. Once again, thank you

The market reports from IMARC have been instrumental in guiding our business strategies. We found the reports comprehensive and data-driven, which helped us make informed decisions. The detailed insights and actionable data have consistently provided us with a competitive edge in a rapidly changing alcohol market.

One of the best things about IMARC is their flexibility and predisposition to tailor the reports and adapt to our needs. They are not just great in their researching and consulting solutions, but their service is unparallelled. We’ve worked with them a couple of times and we will keep working with them in future projects.

We recently commissioned multiple market research reports from IMARC, and the insights we received were invaluable. The depth of analysis, accuracy of data, and actionable recommendations have greatly enhanced our strategic decision-making.

The market estimates provided by your team were pretty much in line with what we were theorizing internally. Really appreciate the work on this.

The sale account manager and the service was excellent. The data and market trends gathered from the report was insightful and really assisted while planning future product and growth strategies.

The report is excellent and has good amount of data and our team is extremely happy with the information provided.

Thank you very much for your cooperation and post purchase support. We were really happy with the final deliverable, and the takeaways from the report.