China Electrical Steel Conference Promotes High-Grade Green Silicon Steel Industry
High-grade silicon steel demand dominated a Wuxi conference this month. Over 140 delegates from 90 organizations attended the event, run by the Electrical Steel Branch of the Chinese Society for Metals. Furthermore, the message was blunt: total capacity is ample, yet premium grades stay short. Jiangsu Zhongtong Weiye Special Steel Co., Ltd. also sits in Wuxi, and we supply those grades. Here is what the numbers actually say.
Numbers at a Glance
- Transformers on the Chinese grid: about 17 million units, 11.2 billion kVA.
- Transformer losses: roughly 40% of transmission and distribution losses.
- Grade-2-or-better share of new transformers: 21% in 2021, 62% in 2022.
- Wind and solar installed capacity, 2022: 370 GW and 390 GW.
- EV motor steel demand: 1.49 Mt yearly, heading to 4.42 Mt by 2035.
Lever One: Efficiency Standards Push Premium Grades
The revised GB 20052 sets energy efficiency limits for power transformers. In practice, grade-2 units need low-loss oriented sheet throughout the core. Consequently, mills that only roll conventional CRGO lose that order book.
Replacement demand compounds the effect. State Grid alone upgraded 170,000 transformers in 2021. Moreover, both grid operators raised retrofit spending 13% during the 14th Five-Year Plan. Therefore, a 200,000–300,000 ton annual demand gain for oriented steel looks realistic.
Lever Two: Wind and Solar Build-Out
Renewable capacity growth lifts both steel families. For example, the 14th Five-Year Plan added 256 million kW of wind, against 152 million kW in the prior plan. Subsequently, that delta alone absorbs about 85,000 tons of oriented steel.
Solar stations add a second layer. Their step-up transformers run intermittent low-voltage inputs, so losses stay high. Currently, no efficiency standard covers that duty. However, grid codes are catching up, and that gap will pull more low-loss grades into the market.
Lever Three: EV and Appliance Motors
Rotating machines use non-oriented grades, and electrification drives the volume. Additionally, new motor efficiency classes raised the bar for industrial drives. Level 1 and Level 2 motor steel demand reached 763,000 tons in 2023.
Appliance compressors follow the same curve. Typically, a variable-frequency air conditioner needs thin, high-permeability sheet to hit top efficiency labels. M19 Non Oriented Electrical Steel fits those stators well.
Lever Four: Carbon Rules Become a Cost Line
The EU CBAM entered its transition phase in October 2023. Definitive charging starts in 2026, and importers must buy certificates. For blast-furnace steel shipped to Europe, analysts estimate a carbon cost near RMB 100 per ton.
Of course, that figure will move with EU allowance prices. Nevertheless, low-carbon electrical steel now competes on more than price. Buyers with EU exposure should ask for mill emissions data alongside the MTC.
Supply Side: Surplus at the Bottom, Shortage at the Top
Total capacity outgrew demand. Domestic CRGO capacity passed 4 Mt in recent years, and output kept climbing. However, the surplus sits in conventional grades, not in premium Hi-B or ultra-thin sheet.
That split explains the price pattern. Conventional CRGO trades near cost, while thin high-induction grades hold a premium. In contrast, buyers chasing the cheapest ton often end up rejecting the lot at incoming inspection.
What Buyers Should Do
- Specify the efficiency class, not just the grade name.
- Ask for core loss tested per ASTM A343 or IEC 60404-2.
- Confirm coating type, because C-5 and C-6 differ in stacking behavior.
- Request emissions data if you export into the EU.
- Fix slit width tolerance before booking tonnage.
We stock M4 Grain Oriented Electrical Steel for power transformer cores. Furthermore, M5 Grain Oriented Electrical Steel covers distribution units. Background on grade behavior sits in our Hi-B oriented silicon steel guide.
Frequently Asked Questions
Not across the board. Conventional CRGO is oversupplied. Premium Hi-B and ultra-thin gauges stay tight.
GB 20052 for the Chinese market. Overseas buyers usually follow EU Tier 2 or local grid codes.
It affects the mill’s cost base. Therefore, expect carbon data requests in quotes from 2026 onward.
Our regular range starts at 0.23 mm. Gauges below 0.10 mm remain allocation-based, as covered in our ultra-thin oriented silicon steel note.
What We Do Not Do
- We do not roll steel or operate a mill.
- We do not certify efficiency classes on your behalf.
- We do not supply amorphous or nanocrystalline cores.
Consequently, we source, slit, and document coil—nothing more.
Specify Your Order
- State the equipment and efficiency class.
- Name the grade.
- Give thickness and slit width.
- Confirm tonnage and port.
We answer with stock and price within one working day.
- Email: vera.liang@ztwysteel.com
- Location: Xishan District, Wuxi, Jiangsu, China
- Supply range: CRGO M3/M4/M5 at 0.23–0.35 mm, CRNGO M19–M43, slit coil
- Slitting tolerance: ±0.05 mm
- Documentation: MTC EN 10204 3.1, core loss per ASTM A343 / IEC 60404-2, emissions data on request
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