Detailed Breakdown of China’s Electrical Steel Production in 2024
In 2024, China’s total electrical steel production reached 16.1 million metric tons, reflecting a 5.4% increase compared to 2023. The production is divided into two major categories: non-grain-oriented electrical steel (NGOES) and grain-oriented electrical steel (GOES), with non-grain-oriented products making up the bulk of the output.
Non-Grain-Oriented Electrical Steel (NGOES)
• Total Production: 13.15 million metric tons (81.5% of total electrical steel output)
• Growth: Up by 9% year-on-year (YoY)
• Medium and Low-Grade NGOES:
o Production: 9.046 million metric tons
o Portion: 69% of NGOES production
o YoY Growth: 8%
• High-Grade NGOES:
o Production: 4.104 million metric tons
o Portion: 31% of NGOES production
o YoY Growth: 11%
NGOES products are primarily used in applications like motors, electrical appliances, and transformers. The strong growth in high-grade NGOES suggests robust demand for high-performance electrical steel in industries that require more advanced materials.
Grain-Oriented Electrical Steel (GOES)
• Total Production: 2.95 million metric tons
• Growth: Increased by 11.9% YoY
Within the GOES category, the production is further divided into:
• High Magnetic Oriented Electrical Steel (HiB):
o Production: 2.01 million metric tons
o Portion: 68% of total GOES production
o YoY Growth: 28%
• Common Oriented Electrical Steel (CGO):
o Production: 0.94 million metric tons
o Portion: 32% of total GOES production
o YoY Decline: -13%
The sharp rise in high magnetic-oriented electrical steel (HiB) signals that China is increasing production for higher efficiency applications like high-tech transformers and electric vehicle (EV) motors. Conversely, the decline in common-oriented electrical steel (CGO) indicates a shift towards more advanced, specialized products.
Production Capacity Expansion
China's total electrical steel production capacity in 2024 reached 17.895 million metric tons, up by 6.7% from the previous year. This capacity expansion was driven by increases in both NGOES and GOES production facilities:
• NGOES Capacity: 14.635 million metric tons, an increase of 6.7% from 2023.
• GOES Capacity: 3.26 million metric tons, up by 5.8% from the previous year.
These increases reflect a strategic focus on bolstering China’s dominance in electrical steel production, particularly in high-grade non-grain-oriented and high magnetic products, which are essential for the growing electric vehicle and renewable energy sectors.
Key Players in China’s Electrical Steel Market
• Baoshan Iron & Steel Co.: The largest producer of electrical steel in China, with the highest output in both NGOES and GOES categories.
• Shougang Zhixin Qian'an Electromagnetic Material Co.: The second-largest producer, also a key player in the domestic electrical steel market.
These two companies lead the charge in China’s electrical steel production, benefiting from their large-scale operations and advanced technology. Their significant share of production has helped China maintain its position as the world leader in electrical steel manufacturing.
Export and Import Trends
• Exports: China's electrical steel exports soared to a record high of about 1.448 million metric tons, an increase of 16.89% from 2023. This surge in exports indicates rising global demand for China’s electrical steel, particularly in regions such as Southeast Asia, Europe, and North America.
• Imports: In contrast, China’s electrical steel imports dropped significantly by 47.26% YoY, totaling just 148,100 metric tons. This decrease suggests that China's domestic production has become more competitive, reducing the need for imports.
The export growth, alongside the decline in imports, highlights China’s increasing self-sufficiency in electrical steel production and its growing global influence in the market.
Future Outlook for China’s Electrical Steel Industry
China’s electrical steel sector is poised for continued growth as demand for energy-efficient electrical components, especially in electric vehicles and renewable energy applications, continues to rise. The increase in production capacities, coupled with the strong export growth, suggests that China will maintain its leadership position in the global market.
However, the country’s ability to sustain this growth will depend on managing environmental regulations, technological advancements in steel production, and maintaining a stable supply of raw materials like iron ore and electrical steel-specific alloys.
Key Takeaways:
• Total electrical steel production in 2024: 16.1 million metric tons, a 5.4% increase from 2023.
• NGOES production: 13.15 million metric tons (9% YoY growth), with high-grade NGOES growing by 11%.
• GOES production: 2.95 million metric tons, an 11.9% increase YoY.
• NGOES capacity: 14.635 million metric tons, a 6.7% increase YoY.
• GOES capacity: 3.26 million metric tons, a 5.8% increase YoY.
• Top producers: Baoshan Iron & Steel Co. and Shougang Zhixin Qian'an Electromagnetic Material Co.
• Electrical steel exports: Increased by 16.89%, totaling 1.448 million metric tons.
• Electrical steel imports: Dropped by 47.26%, totaling 148,100 metric tons.
• Focus on high-grade products: Increase in production of high-grade NGOES and high magnetic-oriented electrical steel.
• China’s growing self-sufficiency: Increased domestic production reducing reliance on imports.
