Driven by rapid capacity expansion, rising global demand, continuous product upgrades, and coordinated policy support, China’s exports of grain oriented electrical steel (also known as CRGO steel) grew rapidly in 2024. With new high-end production lines coming online in 2025—such as Baosteel’s ultra-high-grade electrical steel project and Angang’s HiB-grade oriented silicon steel—China is expected to see even greater export growth. Supported by accelerating new energy infrastructure worldwide, total exports of transformer core steel are projected to exceed 700,000 mt in 2025, further strengthening China’s position in the global electrical steel trade.
I. Supply and Demand Shift: China Becomes a Net Exporter of Grain-Oriented Electrical Steel
China’s production capacity for grain oriented electrical steel has expanded rapidly in recent years. In the first half of 2025, TISCO added 80,000 mt of high permeability steel, while Hunan Valin Steel started operating its 100,000 mt HiB-grade line, filling long-standing supply gaps in the domestic market.
With domestic demand now largely met, Chinese manufacturers have increased their global outreach, working closely with international partners to supply silicon steel transformer core materials to countries where transformer upgrades and grid expansion are accelerating.
Meanwhile, overseas steelmakers are also expanding their transformer steel capacity. In 2024, JSW Steel and JFE Steel formed a joint venture in India—JSW JFE Electrical Steel Private Limited—and invested 120 billion yen to scale production. After the expansion, JFE’s Indian facilities will be able to produce 350,000 mt of grain-oriented electrical steel annually.
Annual History of Oriented Silicon Steel Imports (Kt)
Source: General Administration of Customs
II. Import Trends: Total Imports Decline as Russian HiB Material Gains Share
1. Total Import Volume
China’s annual import volume of grain oriented electrical steel typically ranges between 70,000 and 90,000 mt. However, imports surged to 161,600 mt in 2023 due to the nationwide “Transformer Energy Efficiency Improvement Plan,” which required that over 75% of newly added transformers be high-efficiency models. This sharply increased the demand for high-grade HiB CRGO steel.
Although domestic HiB technology achieved major breakthroughs in 2023—including Ansteel’s 0.27mm HiB passing State Grid certification—new capacity required time to ramp up. Once high-end production expanded in 2024, imports fell back to 72,800 mt, a 54.9% YoY decrease.
In contrast, the first half of 2025 saw imports reaching 47,100 mt, up 31.2% YoY, largely driven by cost-effective Russian supply. China’s full-year import volume is expected to surpass 90,000 mt.
Annual import situation of oriented silicon steel（Kt）
The monthly import situation of oriented silicon steel in the past two years（Kt）
Source: General Administration of Customs
2. Import Sources
In 2025, China mainly imported oriented silicon steel from Russia, Malaysia, Taiwan (China), and Thailand. Among these, Russia and Thailand showed the strongest growth—216% and 108% YoY.
Since July 2022, China has imposed anti-dumping duties (37.3%–46.3%) on grain-oriented electrical steel from Japan, South Korea, and the EU. Russia is not subject to these duties and also benefits from lower freight costs, making it a preferred alternative in the transformer steel market.
The top ten import sources of oriented silicon steel from January to June（t）
Data Source: General Administration of Customs
III. Export Growth: Strong Transformer Replacement Demand in Europe and the U.S.
1. Export Volume
China’s exports of CRGO steel grew rapidly in recent years, reaching 494,800 mt in 2023 and 666,300 mt in 2024—a 34.7% YoY increase.
Key drivers include:
- Large-scale release of high-end electrical steel capacity, enabling China to supply both domestic and overseas transformer manufacturers.
- Private mills upgrading technology, providing competitive pricing and fast delivery to emerging markets like India and Mexico.
- Indirect supply to North America: While the U.S. restricts direct imports of Chinese power equipment under the CHIPS and Science Act, grain oriented electrical steel can still enter the U.S. through third-country assembly hubs such as Mexico and Vietnam.
- Accelerated replacement cycles:
- The EU’s Green Deal requires replacing inefficient transformers by 2030.
- The U.S. Grid Resilience Act provides subsidies for grid modernization.
From January to June 2025, exports reached 393,200 mt, up 16% YoY. Full-year exports are expected to break through the 700,000 mt mark.
Annual export situation of oriented silicon steel(Kt)
The monthly export situation of oriented silicon steel in the past two years（kt）
Data Source: General Administration of Customs
2. Export Destinations
In 2025, China’s major export markets for transformer core steel included India, Mexico, Turkey, Italy, the UAE, South Korea, and Brazil. Export growth was strongest in Mexico, Italy, and Vietnam—up 71.8%, 61.9%, and 57.6% respectively.
The indirect supply route through Mexico and Vietnam continues to play a critical role in reaching North American transformer manufacturers.
The top ten export destinations of oriented silicon steel from January to June（t）
Data Source: General Administration of Customs
IV. Global New Energy Expansion Pushes 2025 Export Forecast Beyond 700,000 mt
The surge in grain oriented electrical steel exports during 2024 resulted from four key factors:
- Expanded domestic high-end CRGO steel capacity
- Strong global transformer demand
- Improved product mix
- Coordinated industrial policies
With Baosteel and Angang’s new high-grade production lines starting operation in 2025, China’s supply of high permeability steel and oriented silicon steel will further increase. Supported by global grid construction, renewable energy projects, and large-scale transformer replacement, China’s exports of transformer steel are projected to exceed 700,000 mt in 2025, reinforcing the country’s leadership in the global CRGO market.
