China’s High-Performance Silicon Steel Exports Surge Sharply

China’s high-performance silicon steel sector is experiencing a significant export surge in early 2026, driven by an unprecedented global demand for power grid upgrades and the rapid expansion of electric vehicle (EV) infrastructure. Recent customs data and market reports indicate that while traditional steel products face stricter export licensing, the high-value silicon steel segment remains a primary growth engine for Chinese metallurgical exports.

silicon steel coil

Global Grid Modernization Fuels Demand

With countries in Southeast Asia, Middle East, and Africa racing ahead with their "Smart City" projects, the need for high-efficiency transformer is skyrocketing. Cold Rolled Grain Oriented Silicon Steel (CRGO) has become the "unsung hero" of this transformation. Its unique "Goss orientation" results in negligible energy dissipation, which makes it an essential material for the power and distribution transformers used in today's energy grids.

The global grain-oriented electrical steel market size is estimated to reach USD 14.65 billion in 2026, in terms of value, with China keeping a commanding position in the manufacturer and supplier.

silicon-electrical-steel-sheet

Key Product Highlights and Market Trends

The surge is particularly evident in several specialized categories:

M36 Silicon Steel: This Non Oriented (NO) grade is gaining strong momentum in energy saving motors and generators. As industry automation reaches its peak in 2026, M36 Silicon Steel still holds the top place among its balanced magnetic properties yet economical.

Silicon Steel Coils: Major producers are increasingly adopting Silicon Steel Coils due to its compatibility with the automated stamping processes efficiency and clean delivery reducing waste and increasing production speeds while consumer laminations used in domestic appliances and industrial machineries.

Oriented Silicon Steel Coil:It is necessary to use Oriented Silicon Steel Coil products for the HV power transmission. The market is turning to specialized grades like domain-refined (laser-scribed) and high permeability (Hi-B) to comply with tighter world energy-efficiency regulations.

Strategic Shift Toward High-Value Exports

Since the implementation of new export policies in January 2026, China has shifted its focus from low-end overcapacity to high-quality, eco-friendly goods. Unlike high-energy, low-margin products, high-performance silicon steel is viewed as a strategic "hi-tech" export.

Silicon Steel Coil supplier - Royal Steel Group

With the global "Carbon Tax" (CBAM) entering its substantial collection phase in 2026, leading manufacturers are prioritizing low-carbon production lines to meet international environmental standards. For those seeking reliable, high-efficiency materials, Silicon Steel Coil supplier - Royal Steel Group remains at the forefront of this shift, providing the critical 0.23mm and 0.30mm thickness variants that dominate the current market. These grades are highly valued for their superior performance in reducing "no-load" energy losses in transformer cores, ensuring that as the world moves toward universal electrification, the supply chain remains robust and sustainable.

Post time: May-15-2026