Since March, China's non-oriented silicon steel prices have continued to decline and show a stable trend of shocks, on the one hand, although the price rose at the beginning of the year, but the downstream continued to purchase on demand, demand performance is poor, the purchase volume is not affected by the sentiment of buying up or not buying down, on the other hand, China's silicon steel production line continues to increase, plus the reduction of export orders, under the influence of dual factors, the market presents oversupply. Downward pressure on prices.

According to the General Administration of Customs data show that in November 2023, China's non-oriented silicon steel exports totaled 64,500 tons, an increase of 54.21%, and the cumulative exports from January to November were 675,200 tons, down 14.21% year-on-year. From the specific data from 2020 to 2023, the total export of non-oriented silicon steel in 2020 is 265,200 tons, the total export of non-oriented silicon steel in 2021 is 613,800 tons, the total export of non-oriented silicon steel in 2022 is 843,300 tons, and the total export of non-oriented silicon steel in China from January to November 2023 is 678,500 tons. The year-on-year decline was 14.21 per cent.

In recent years, China's non-oriented silicon steel industry has continued to develop, and the main application of non-oriented silicon steel is the home appliance industry, especially the proportion of non-oriented silicon steel for air conditioning and refrigerators is relatively high. In the "One Belt and One Road" drive, accelerate China's silicon steel exports, overseas silicon steel market space is huge, in 2022 to become the world's largest exporter, 2023 exports although there is a reduction but still in the forefront, 2023 from January to November China's non-oriented silicon steel exports to 60 countries, the export is more dispersed, China's main export countries of non-oriented silicon steel are India, the United States, Mexico, Italy, Vietnam, Turkey and other countries.

The main application downstream of non-oriented silicon steel is the home appliance industry, especially the proportion of non-oriented silicon steel for air conditioning and refrigerators is higher. In the motor manufacturing process, the production cost of silicon steel sheet accounts for about 1/3 of the total production cost of the motor. China's motor industry after years of development, through innovation, cooperation, introduction and other ways to accelerate the level of production technology, has formed a certain industrial scale and industry pattern. However, with the rapid development of information technology, intelligence has become an important trend in the industrial field, and countries continue to improve the quality, efficiency, durability and environmental protection performance requirements, which brings greater challenges to China's motor export enterprises.

According to the data of the General Administration of Customs, from January to November 2023, China's motors and generators were exported to 221 countries, and the top five export destinations of China's motors and generators were the United States, Japan, Germany, India and Mexico, accounting for 12.87%, 6.61%, 4.85%, 4.66%, 4.65%, respectively. Among them, the United States is the main importer of electric motors and generators in China, and the amount of electric motors and generators exported to the United States from January to November 2023 is 12.118 billion yuan, accounting for 12.87%. The scale of China's motor industry continues to expand, the number of enterprises in the industry is increasing, the market competition is fierce, and there is competitive pressure from foreign enterprises. In order to meet the diverse needs of the product market, enterprises must find new development directions and breakthroughs, to make efforts in industrial structure reform, technological innovation and improvement, price adjustment, and continue to expand the scale of production, in order to ensure the steady growth of motor exports.

For non-oriented silicon steel, China's supply capacity ranks high in the world, mainly benefiting from domestic automobiles, home appliances and other high-volume downstream industries that use non-oriented silicon steel. Looking forward to 2024, the structure of the silicon steel export market and the difficulties it faces still exist, and the cycle factors are expected to improve. Specifically, in terms of demand, from the downstream motor point of view, driven by intelligent home appliances, energy-saving policies, etc., the global home appliance market size still has room to increase, home appliances and motor exports may be incremental, manufacturing steel continues to grow, and the latter is expected to mean regression; On the supply side, most domestic steel mills have added silicon steel production capacity, and it is expected that the global supply of silicon steel will be in excess in 2024. Overall, the silicon steel market will face many risks and challenges in the future, driven by the policy, focus on green low-carbon, energy saving and consumption reduction, to build an orderly industrial chain, to guide the promotion of industrial modernization, market sentiment or repair, but the supply and demand mismatch pattern still need to work together, it is possible to get actual improvement.