In recent years, the production capacity of non-oriented electrical steel has witnessed explosive growth. According to SMM statistics, four new production lines of non-oriented electrical steel will be put into operation in 2022, and three new projects of non-oriented electrical steel will be put into operation in 2023. In 2022 and 2023, the new capacity of non-oriented electrical steel will be 1 million tons and 1.42 million tons, respectively, and the planned capacity will be 2.03 million tons.

In recent years, due to the promotion of the national carbon neutral and carbon peak dual-carbon policy and the explosive growth of the new energy automobile industry, the potential demand for high grade and new energy grade electrical steel has increased significantly, and non-oriented electrical steel manufacturers have laid out new energy grade products and increased the production capacity of high grade products. In the downstream demand for non-oriented electrical steel, home appliances, small and medium-sized industrial motors and the automotive industry account for the vast majority of demand. The home appliance industry accounts for 50% of downstream demand, and industrial motors account for 25% of downstream demand. There is a huge demand for non-oriented electrical steel in the home appliance industry, and the main demand grades are 50W800, 50W600 and 50W470. The products using 50W470 or more high grade non-oriented electrical steel are mainly medium and high-end household appliances based on frequency conversion air conditioners.

At present, the demand for non-oriented electrical steel for small and medium-sized industrial motors is mainly concentrated in the middle and low grades. However, with the formal implementation of the "GB18613-2020 motor energy efficiency Limits and energy efficiency levels" in June 2021, the "Motor energy Efficiency Improvement Plan" issued by the Ministry of Industry and Information Technology in November 2021, and the "Industrial energy Efficiency Improvement Action Plan" issued in June 2022, a series of energy conservation and emission reduction policies were introduced. In the future, the demand for high grade non-oriented electrical steel above 50W470 in the field of industrial motors will increase significantly.

In addition to the new energy motor demand for new energy grades, the demand for non-oriented electrical steel is mostly high grade non-oriented electrical steel, but because the automotive parts are mostly small micro-motors, the total demand is not high.

At present, the main demand for large thermal power, nuclear power, hydropower and other generators is about 50W350 and above high grade non-oriented electrical steel; The non-oriented electrical steel used in the wind power industry vigorously developed by the state is mainly 50W600 medium and low grade.