"China's silicon steel production has achieved full coverage from low-end to high-end products. The surface quality, dimensional accuracy, and overall quality are comparable to international standards," stated Chen Zhuo, former Secretary-General of the Electrical Steel Sub-Committee of the Chinese Society for Metals, during the "Dialogue on High-End Silicon Steel to Support the Dual-Carbon Strategy" event on July 26. He analyzed the history, current status, and future trends of China's silicon steel industry.
Silicon steel, a key raw material for motors and transformers, is essential for China's modernization, high-quality development, and people's lives. It is a nationally encouraged product, also known as cold-rolled electrical steel or cold-rolled silicon steel, categorized into non-oriented and oriented silicon steel. In 2014, China announced the elimination of hot-rolled silicon steel sheets. Non-oriented silicon steel, with a silicon content of 0.10% to 3.50%, is primarily used for motor cores. Oriented silicon steel, with a silicon content above 3.0%, is mainly used for transformer cores.
Rapid Growth in Silicon Steel Industry
In 2023, China produced approximately 12.04 million tons of non-oriented silicon steel (an 8% increase) and 2.65 million tons of oriented silicon steel (a 22% increase). High magnetic induction oriented silicon steel (HiB) accounted for 59%, and conventional oriented silicon steel (CGO) accounted for 41%. Medium and low-grade non-oriented silicon steel accounted for 69%, while high-grade accounted for 31%.
In the first half of 2024, China produced 1.385 million tons of oriented silicon steel, with a capacity utilization rate of 87%, and 641.7 million tons of non-oriented silicon steel, with a utilization rate of 82%. However, challenges include adjusting product structures, upgrading equipment for quality and smart manufacturing, and optimizing processes for environmental sustainability.
New Opportunities for Silicon Steel Materials
Chen Zhuo analyzed the demand for silicon steel, highlighting upgraded national energy efficiency standards and the promising global transformer market. The development of efficient, sustainable, and smart manufacturing is the future direction. The U.S. Department of Energy predicts significant growth in transformer demand by 2027, presenting both challenges and opportunities for Chinese exports.
Future Trends: Thin Specifications, High Magnetic Induction, Low Iron Loss
Chen predicts that future silicon steel development will focus on thin specifications, ultra-high magnetic induction, low iron loss, high efficiency, low-carbon green production, and smart manufacturing. Rapid self-adhesive cores with high strength, precision, low noise, and high efficiency will drive motor technology.
The market will become more competitive, relying on quality, cost, and credibility. China's silicon steel industry aims to serve and contribute to the global market.
