Silicon Steel
As the world increasingly turns to new energy sources, electrical steel, a crucial foundational material, plays an essential role in this burgeoning industry. China, a leading producer and exporter of grain-oriented electrical steel suppliers, is solidifying its position in the global market through technological innovation and enhanced product quality.
1. What's electrical steel?
Electrical steel, a specialized metal material, is renowned for its fine-tuned silicon content, which endows it with exceptional electromagnetic properties. Distinguished by their grain orientation, they are categorized into Grain-Oriented (GO) and Non-Oriented (NGO) electrical steel. GO types, favored for their high magnetic permeability and low core loss, are particularly sought after in the manufacturing of transformers and motors. Conversely, NGO types, with their uniform magnetic properties, are ideal for various motor and transformer cores. The production process of electrical steel, involving stringent chemical composition control, hot and cold rolling, annealing, and coating treatments, is pivotal to the final product's performance.
2. How is silicon steel manufactured?
Producing silicon steel is like planting an apple orchard, where each steel furnace, yielding approximately 28 tons, symbolizes an individual apple tree. The electromagnetic properties of the silicon steel emerge in a normal distribution, mirroring the assortment of apple sizes on a tree. Just as an orchardist forecasts the general distribution of apple sizes of the whole orchard throughout the year, they can estimate the relative proportions of silicon steel segments with varying performance levels. However, much like the inherent unpredictability in the size of apples grown on each tree, the exact grades and quantities of silicon steel produced in every batch are not controllable. This is especially true for high-specification silicon steels, such as those exceeding the B20R070 performance grade, where the production timeline is prone to variation. After each steelmaking process, the selection of steel grades resembles the act of harvesting apples of different sizes. The acceptance rate, or the yield of usable steel, stands at around 10%. So there will be a big amount of byproducts that do not align with the premium grades. This byproduct can still find use in applications where the performance requirements are less stringent.
In conclusion, the silicon steel production process is characterized by its inherent variability, much like an apple orchard where the farmer can anticipate a general harvest but cannot dictate the precise outcome of each tree's yield. This analogy serves to illustrate the complexities and uncertainties in the manufacturing of high-quality silicon steel.
3. How to choose the right silicon steel grade for the plant?
The application of silicon steel in end-use products is largely dependent on the comprehensive performance of the final products, with no strict demand for specific grades. For instance, in the manufacturing of transformers, which are a primary application for silicon steel, costs are divided such that 40% is allocated to copper wire, while 60% is dedicated to the core construction. Utilizing higher-grade silicon steel leads to the creation of a core with a smaller diameter, necessitating a reduced amount of copper wire for coiling. As a result, variations in copper pricing can significantly alter the market's demand for different grades of silicon steel.
In scenarios when terminal manufacturers face a shortage in the production capacity of a specific silicon steel grade, they would weigh a variety of cost factors and potentially revise their design plans. This could involve employing silicon steel with alternative performance attributes as a substitute. Consequently, steel traders need to sustain close relationships with end-use manufacturers, adjusting their supply chain to accommodate the specific products and design methodologies of these manufacturers, rather than indiscriminately selecting products of a single grade.
4. Exploration of silicon steel applications in the new energy industry
The application prospects for electrical steel in the new energy sector are vast, especially in the manufacturing of electric vehicles, where it serves as a core material for drive motors, directly impacting motor efficiency and vehicle performance. Additionally, in wind power generation, the manufacturing of large wind turbines relies on high-performance electrical steel. In energy storage systems, electrical steel plays a significant role in the inverters and transformers within battery storage systems, enhancing the efficiency and reliability of energy storage. With the growing global reliance on renewable energy, the market demand for electrical steel is expected to continue rising. The future development of electrical steel will focus on increasing magnetic permeability, reducing losses, optimizing coating technology, and developing environmentally friendly materials.
5. China's silicon steel market capacity and export trends forecast for 2024
According to data from the General Administration of Customs of China, the export of China's electrical steel began to surge significantly in 2022, with exports reaching 860,959 tons, a 64% increase from the previous year. Despite a slight 4% decrease in 2023 to 1.23 million tons, the first three months of 2024 saw a 30% increase in export volume compared to the same period in the previous year, with the top five buyers—India, Turkey, Mexico, Italy, and the United States—accounting for 57% of the total exports
6. Baosteel - the most essential silicon steel manufacturer in China
China's electrical steel exports have shown remarkable growth in recent years, thanks to continuous breakthroughs in technology innovation and product quality by domestic steel enterprises. Baosteel, a listed subsidiary of China Baowu Steel Group, has secured a significant market share in the electrical steel sector with its advanced manufacturing processes, strict quality control, and ongoing R&D investment. Baosteel reported that over half of the drive motors in China's manufactured electric vehicles utilize its non-grain-oriented electrical steel. Baosteel's products meet the demands of both domestic and international high-end markets and have enhanced the international competitiveness of Chinese electrical steel through participation in setting global standards.
7. As a steel supplier balances the quality and price
Shanghai Baohui Steel Limited leveraging the robust production capabilities of Baosteel, offers a comprehensive range of electrical steel sheet products, including but not limited to B20R070, B23R080, and B30R090 series. With ample stock on hand, we are well-positioned to promptly respond to customer orders and also place orders at competitive prices on behalf of clients. Our dedicated team provides a one-stop service, from technical consultation to logistics and distribution. We invite you to visit our official website for detailed information on electrical steel sheet products, technical specifications, and the latest market competitive prices. Our online customer service is always ready to answer your inquiries and provide personalized purchasing advice.
