Baosteel(SH:600019) Chan Ye Xin Xi Wang·2026-02-22 03:09Core Insights - The electrical steel industry is experiencing simultaneous scaling and high-end development driven by domestic industrial structure optimization, with production and consumption expected to reach historical highs by 2025 [1][6] - The industry is characterized by dual concentration in both product categories and regions, with new capacities focusing on high-end products, particularly in East, Central, and North China [1][6] - The market is witnessing a significant increase in demand from downstream sectors such as electric vehicles and renewable energy, with a notable growth in both oriented and non-oriented electrical steel [1][6][11] Industry Overview - Electrical steel, also known as silicon steel, is a critical soft magnetic alloy material used in power, electronics, and military industries, known for its high magnetic permeability and low iron loss [2][5] - The main types of electrical steel are oriented and non-oriented, with the former used in high-frequency transformers and the latter in motors and household appliances [3][4] Current Development Status - From 2020 to 2024, the production of electrical steel is projected to grow from 11.18 million tons to 16.1 million tons, with consumption increasing from 11.08 million tons to 14.8 million tons [6] - By 2025, production is expected to reach 23.85 million tons, marking a significant increase of 775,000 tons from 2024, with consumption also rising to 22.495 million tons [6] Capacity Expansion - As of mid-2025, there are 27 ongoing and planned projects for electrical steel, with 15 projects for oriented steel and 12 for non-oriented steel, indicating a total new capacity of 668,000 tons [6][7] - The majority of new projects are concentrated in East China, with 13 projects, while Central and North China have 8 and 5 projects respectively [6][7] Import and Export Analysis - The import and export market for electrical steel has established a pattern of "export leading, import supplementing," with exports increasing from 53,000 tons in 2020 to 145,000 tons in 2024 [8][9] - By 2025, imports are expected to slightly increase to 15.9 million tons, while exports are projected to reach 151.4 million tons, reflecting a robust international competitiveness [8][9] Price Trends - The import price of electrical steel is expected to decline to $1,073.3 per ton by 2025, while the export price remains higher at $1,328.2 per ton, indicating a strong value proposition for domestic products [9] Industry Chain - The upstream of the electrical steel industry consists of raw material suppliers, while the midstream includes production companies that process these materials into electrical steel products [11][12] - The downstream applications are diverse, primarily in transformers and motors, with emerging sectors like electric vehicles and smart appliances driving growth [11][12] Competitive Landscape - The industry is characterized by a concentrated competitive landscape, with Baosteel and Shougang Zhixin as the leading players, dominating both capacity and market share [12][13] - The market is segmented, with Baosteel and Shougang leading the high-end oriented steel market, while other companies focus on mid to low-end segments [12][13] Future Development Trends - The electrical steel industry is expected to move towards high-end product development, increased concentration, and green intelligent upgrades, aligning with the dual carbon strategy [13][14][15] - The focus will be on high magnetic permeability, low iron loss, and thin specifications, with a significant emphasis on technological advancements to meet high-end equipment demands [13][14][15]