How High-Grade Oriented Silicon Steel Exports Benefit Industrial Listed Companies

août 8, 2026 Blog

Chinese transformer exports have maintained robust growth since early 2026, while oriented silicon steel — the core raw material for transformer cores — remains trapped in a multi-year price trough. The whole industrial chain faces a split pattern: booming downstream transformer demand and stagnant upstream silicon steel profitability.

This report analyzes profit drivers for listed transformer manufacturers, plus forward industry trends fueled by global new energy transition, AI computing infrastructure expansion, and China’s 15th Five-Year Plan power grid investment. Interviews cover upstream silicon steel traders, midstream transformer listed firms, and industry analysts to deliver full-chain market insights.

1. Export Volume Surges 40% YoY; Large Listed Transformer Leaders Grab High-Margin Overseas Orders

Driven by global energy transition, AI data center construction and accelerated cross-border power grid upgrades, China’s transformer export volume and value both rose more than 40% year-on-year in 2026. Overseas markets including the Middle East, Europe and South America become major incremental demand sources.

1.1 Leading Listed Enterprises Capture Premium Overseas Orders

Top listed power equipment manufacturers with mature certification systems, global service networks and technical advantages dominate export orders with higher pricing power:

TBEA (600089.SH)
Siyuan Electric (002028.SZ)
China Xidian (601179.SH)
Baobian Electric (600550.SH)
Jinpan Technology (688676.SH)
Igor (002922.SZ)
Mingyang Electric (301291.SZ)

Overseas gross margins for large players stand 5–10 percentage points higher than domestic sales. One mid-tier listed firm disclosed its 2025 overseas revenue hit RMB 130 million, with a 2026 target of RMB 400 million. Many manufacturers carry order backlogs scheduled for delivery through April 2026.

Mingyang Electric adopts a dual layout of indirect exports and global localized deployment, shipping transformer products to over 60 nations across Europe, North America, Southeast Asia and Africa.

1.2 SMEs Face Export Barriers, Rely on Domestic Market & Subcontracts

Small and medium transformer factories lack international certifications, global sales channels and sufficient capital reserves, limiting their access to direct overseas orders. Most focus on domestic demand or accept secondary subcontracts.

Field surveys of manufacturers in Shijiazhuang and Xuzhou show stable production capacity. Standard SCB14 / SCB18 dry-type transformers support fast delivery: batches of 10–20 units only take 15–20 working days, eliminating market rumors of multi-month waiting cycles.

1.3 Overseas Revenue Breakdown of Key Listed Companies

TBEA: H1 2025 overseas revenue RMB 5.932 billion, 12.26% of total revenue
China Xidian: H1 2025 overseas revenue RMB 2.171 billion, 19.16% share
Siyuan Electric: Export revenue accounts for 33.68% of total revenue
Jinpan Technology: Overseas revenue exceeds 30%
Igor: Full-year 2025 overseas revenue RMB 1.91 billion, 36.28% share

2. Oriented Silicon Steel Prices Hit Multi-Year Lows, Boosting Transformer Gross Profit Margins

Copper and grain-oriented silicon steel sheets account for over 35% and 25% of total transformer production costs respectively, directly shaping manufacturers’ profit levels.

2.1 Low Silicon Steel Prices Offset Surging Copper Costs

Copper prices have skyrocketed since Q4 2025, pushing up raw material expenses for copper-wound transformers. However, sustained low prices of oriented silicon steel create strong profit buffers for transformer producers in 2026.

Many overseas buyers are highly price-sensitive and widely adopt aluminum-wound transformers instead of copper alternatives. Domestic operators of charging stations also shift to aluminum transformers, triggering an industry-wide “aluminum-for-copper” substitution trend that further controls production costs.

2.2 Oversupply Pressures Upstream Hi-B Silicon Steel Producers

Downstream transformer manufacturers reduce silicon steel purchasing volumes amid fierce market competition, creating oversupply across the oriented silicon steel sector.

Capacity expansion wave: From 2024 to 2025, major steel mills plus new entrants including Hunan Hongwang, Baotou Weifeng and Puyang Iron & Steel ramped up production.
Official capacity data: China’s effective oriented silicon steel capacity reached 4.08 million tons in 2025, a YoY increase of 750,000 tons; total output hit 3.4468 million tons, with Hi-B high-induction silicon steel output at 2.9554 million tons.
Price gap between top-tier and small mill products: WISCO’s 23RK085 was quoted at RMB 11,600/ton on April 7, 2026, down roughly RMB 4,000 year-on-year from RMB 15,800/ton in 2025. Small mill Hi-B grades cost RMB 1,000 less per ton than Baosteel and WISCO mainstream products.

Traders note monthly price rebounds of RMB 100–200 in 2026 remain mild, with many upstream steel plants still operating at a loss. Overseas buyers from Africa and the Middle East favor low-cost regular silicon steel instead of premium Hi-B grades, restraining price hikes for high-end oriented silicon steel.

2.3 Industry Analysts Forecast Silicon Steel Price Rebound in 2026

Huang Song, analyst at Shanghai Steel Union Cold Rolling Division, predicts a fluctuating upward trend for oriented silicon steel through 2026:

China’s RMB 4 trillion power grid investment plan under the 15th Five-Year Plan
Accelerated grid renovation projects in Europe and North America
Sustained demand growth from transformer, energy storage and EV charging infrastructure

These drivers will gradually balance silicon steel supply and demand and lift market prices from current bottom levels.

3. Domestic Demand Accelerates: 15th Five-Year Power Grid Bidding Kicks Off Early

While overseas demand outperforms domestic markets for now, China’s massive grid investment cycle unlocks long-term growth for transformer and silicon steel consumption.

3.1 State Grid Launches 2026 First Large Transformer Tender

At the end of March 2026, State Grid released results for its inaugural transformer public procurement tender, covering 83 packages worth RMB 2.4 billion supplied by 33 qualified vendors:

TBEA subsidiaries: Total winning bid ~RMB 570 million (23.7% market share)
China Xidian affiliates: Total winning bid ~RMB 480 million (20.0% market share)
Shandong Electric enterprises: Total winning bid ~RMB 290 million (12.1% market share)

Market participants confirm 15th Five-Year grid tender schedules move faster than initial forecasts, with bulk order releases concentrated in Q2 2026 following Q1 holiday delays.

3.2 Multiple Domestic Demand Pillars Support Long-Term Transformer Growth

Despite cooling demand for small charging station transformers, industry insiders hold positive two-year outlooks driven by four core demand sources:

RMB 4 trillion national power grid investment under the 15th Five-Year Plan
Energy storage station and heavy-duty EV charging station construction
Rapid rollout of overseas charging infrastructure
Rural grid renovation and high-efficiency transformer replacement nationwide

4. New Growth Track: Listed Companies Accelerate Solid-State Transformer R&D for AI Computing

AI data centers and supercomputing facilities represent the highest-growth segment for transformer demand.

4.1 Solid-State Transformers (SST) Become Next-Generation Power Core for AI Infrastructure

At the 2025 OCP Global Summit, Nvidia released its 800V DC power supply whitepaper, identifying high-power-density, intelligent solid-state transformers as the definitive power solution for future AI factories. SSTs will dominate high-end scenarios including new energy equipment, data centers and smart grids.

4.2 Listed Firms Roll Out Commercial SST Prototypes

Multiple power equipment listed companies have completed solid-state transformer development and trial operation:

Jinpan Technology: Finished SST prototype design and production by March 27, 2026
China Xidian: 10kV/2MVA/750V solid-state transformer commissioned at Xi’an Hi-Tech Zone optical-storage-charging smart park
Sifang Co., Ltd. & Igor: Released new SST products in March–April 2026, advancing commercialization progress

4.3 Short-Term Limitation: High Costs Restrict Large-Scale Replacement

Company insiders note solid-state transformers carry far higher production costs than traditional iron-core transformers. Conventional silicon steel transformers will remain the mainstream choice for data center power supply in the short to medium term.

Conclusion

Chinese transformer listed companies enjoy dual profit support in 2026: record export growth with premium overseas pricing, plus cost relief from multi-year low oriented silicon steel prices.

Medium-term demand expansion will come from China’s 15th Five-Year RMB 4 trillion grid investment, domestic energy storage and EV charging infrastructure, plus global grid modernization. Upstream Hi-B silicon steel supply-demand balance will likely improve in late 2026, triggering moderate price recovery.

Looking ahead, solid-state transformers for AI computing centers emerge as a new strategic growth track for listed power equipment manufacturers, creating long-term valuation upside amid global energy transition.

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