Electrical steel refers to silicon alloy steel with silicon content between 0.5-4.5% and carbon content less than 0.08%. It has the characteristics of high permeability, low coercivity and large resistivity, so the hysteresis loss and eddy current loss are small. It is mainly used as magnetic material in motors, transformers, electrical appliances and electrical instruments. According to the different production process, electrical steel can be divided into hot rolled electrical steel and cold rolled electrical steel two categories. Hot rolled electrical steel can be divided into hot rolled high electrical steel and hot rolled low electrical steel two kinds; Cold-rolled electrical steel can be divided into oriented electrical steel and non-oriented electrical steel two kinds.

The upstream of the electrical steel industry chain is the raw material link, mainly including iron ore, pig iron, coal, etc. The middle reaches are electrical steel production and supply links; Downstream is mainly used in household appliances, new energy vehicles, electricity, electronics and other fields. Motor is one of the most important downstream demand areas of electrical steel, as the basis of China's industrial development, is an important part of the national economy, with the rapid development of China's economy in recent years, the scale of the industry continues to expand. According to data, in 2022, China's output of AC motor is 429.287 million kilowatts, an increase of 6%.

With the development of China's electrical steel technology, high-frequency ultra-thin oriented and non-oriented electrical steel (less than 0.1mm) has gradually become the key material of development, "13th Five-Year" period, China's electrical steel production capacity continues to break through 10 million tons, becoming the world's electrical steel production and consumption country. According to the data, in 2021, China's electrical steel production capacity reached 14.48 million tons, an increase of 13.5%. From the perspective of production capacity structure, China's electrical steel production capacity is mainly non-oriented electrical steel, and in 2021 China's non-oriented electrical steel production capacity reaches 12.53 million tons, accounting for 86.5% of the total production capacity; Oriented electrical steel production capacity reached 1.95 million tons, accounting for 13.5% of the total capacity. From the perspective of production capacity, with the continuous expansion of China's electrical steel production capacity and the rapid development of downstream demand markets, China's electrical steel production is also increasing year by year. According to the data, in 2021, China's electrical steel production reached 13.1828 million tons, an increase of 17.9%.

With the rapid development of China's electrical steel industry, the scale of import and export of the industry has also continued to expand. According to data, in 2022, China's electrical steel imports were 301,600 tons, down 33.7% year-on-year, and the import amount was $405 million, down 26.1% year-on-year; The export volume was 1.2874 million tons, an increase of 31.8%, and the export value was 2.508 billion US dollars, an increase of 63.5%.

In recent years, in order to promote the development of the electrical steel industry, the relevant state departments have successively issued a series of relevant policies to support and encourage the development of the industry, providing a good policy environment for the industry. With the development of China's economy and the acceleration of the industrialization process, the consumption of electricity continues to increase, some new demand for electric energy is constantly spawned, and the proportion of electric energy in the energy consumption structure is gradually increasing. The rise in electricity consumption has led to an increase in the demand for transformers. The no-load loss and load loss of the transformer are related to the loss of the iron core, especially the no-load loss is mainly generated by the loss of the iron core, which will bring about the increase in the demand for silicon steel with high magnetic induction and low iron loss orientation, and then promote the rapid development of the electrical steel industry. According to the data, in 2022, China's whole society electricity consumption reached 8637.2 billion KWH, an increase of 3.9%.

The iron and steel industry is an important basic industry of China's national economy, an important support for building a modern power, an important field for achieving green and low-carbon development, and an effective support for the healthy development of China's economy and society. With the adjustment and upgrading of China's steel industry, the further contraction of the traditional steel manufacturing capacity, and the increase of support for the development of the special purpose steel industry, in recent years, the state has introduced a series of macro-control policies to industrial upgrading and energy conservation and environmental protection as the focus, to ensure the healthy and orderly development of the electrical steel industry. With the support and encouragement of national policies, the future of China's electrical steel industry, especially the low iron loss and high magnetic induction orientation electrical steel industry will usher in good development opportunities.