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.

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%. From the perspective of production structure, in 2020, China's electrical steel production, non-oriented electrical steel production of 9,604,900 tons, an increase of 3.7%, accounting for 85.9% of the total output; The output of oriented electrical steel was 1,576,200 tons, an increase of 10.3%, accounting for 14.1% of the total output. Among them, non-oriented electrical steel is mainly medium and low grade products, and the output of electrical steel in 2020 accounts for 68% of the total output. Oriented electrical steel is mainly oriented electrical steel with high magnetic inductance, and the output of electrical steel in 2020 accounts for 8.3% of the total output.

At present, China's large motor (thermal power, wind power) is trying to use bottomless orientation electrical steel as raw material to make motors, and it is expected to achieve technological breakthroughs in the future, providing new growth space for the electrical steel industry. In addition, the stator and rotor in the drive motor of new energy vehicles can now be paired with oriented electrical steel and non-oriented electrical steel, reducing energy consumption and improving performance. The vigorous development and promotion of new energy vehicles is expected to provide potential growth space for electrical steel.

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; Imports amounted to US $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%. At present, China's electrical steel industry market concentration is high, from the perspective of non-oriented electrical steel market, the industry CR5 will reach 74.15% in 2020.