Global Silicon Steel Market Watch: Tight Hi-B Supply, EV Demand Surge, and EU Trade Probe Rattle Pricing in May 2026
Global Silicon Steel Market Watch: Tight Hi-B Supply, EV Demand Surge, and EU Trade Probe Rattle Pricing in May 2026
TOKYO / SHANGHAI — May 28, 2026 — The global silicon steel (electrical steel) market is displaying sharp structural divergence in mid-2026, with high-grade grain-oriented (GO) silicon steel — particularly High-Magnetic-Induction (Hi-B) grades — tightening on grid modernization and data-center demand, while non-grain-oriented (NGO) steel faces oversupply pressure despite resilient electric-vehicle (EV) motor uptake.
Market Overview
The worldwide electrical steel market was valued at approximately USD 26.5 billion in 2025 and is forecast to reach USD 28.1 billion in 2026, advancing at a CAGR of around 4.6% through 2035, driven by electrification of transport, renewable-energy integration, and global grid-upgrade programs . Non-grain-oriented electrical steel accounted for roughly 72% of market value in 2025, with grain-oriented steel making up the remaining 28% .
Segment Spotlight
- Grain-Oriented Silicon Steel (GOES): Premium Hi-B and ultra-thin (≤0.20 mm) grades remain in short supply, buoyed by UHV transformer rollouts in China, U.S. and European grid-renewal tenders, and AI-data-center backup-transformer specifications. Conventional CGO (conventional grain-oriented) material, however, is amply supplied, keeping its spot price rangebound. Chinese domestic Hi-B quotes for May 2026 hold near CNY 11,400/ton for 23R080规格, while standard CGO trades lower amid modest discounting by traders .
- Non-Grain-Oriented Silicon Steel (NGO): General-purpose NGO prices are under pressure from excess capacity, with mainstream 50W800-grade spot offers in China at CNY 4,550–4,600/ton in late May. By contrast, high-grade NGO for EV traction motors (low iron loss, thin gauge) stays relatively firm, supported by continued global EV-production growth. Market participants note a “cost-support vs. soft-seasonal-demand” stalemate heading into June .
Capacity & Corporate Moves
China continues to dominate global capacity — accounting for ~56% of GO and ~67% of NGO output — with Baowu Steel Group leading the field. Baowu and Shougang have commissioned additional advanced automotive-grade NGO lines, while Taiyuan Steel (TISCO) commercially produced 0.18–0.20 mm ultra-thin green-oriented silicon steel via an all-scrap EAF route, cutting CO₂ per ton by over 76% .
In Europe, ArcelorMittal brought its new electrical steel line at the Mardyck plant (France) on stream in March 2026, tripling its European NGO/HGO capacity to ~295 kt/year, aimed at serving EU auto OEMs and meeting tighter ecodesign rules .
Trade & Policy Developments
The European Commission’s safeguard investigationinto imported grain-oriented silicon steel — announced in 2025 and covering both flat-rolled GOES and transformer laminate/core packs — is pending a final ruling expected by December 2026, with provisional measures possible as early as Q3. Analysts say the probe could temporarily push up EU GOES price benchmarks by 10–20% if restrictions bite, while prompting a pre-deadline “front-loading” of shipments from Asian exporters .
China introduced an export-license regime for lower-grade NGO products starting January 2026, intended to curb disorderly low-end exports and steer producers toward high-value grades .
Outlook
Industry watchers expect:
- GO Hi-B: Continued tightness through H2 2026; prices biased upward on grid-capital-expenditure cycles in the U.S., EU, and China’s “15th Five-Year Plan.”
- NGO (general purpose): Range-bound, with periodic mill-list-price hikes offset by high social inventories and seasonal lulls; high-grade EV-spec NGO to outperform.
- Longer-term: Accelerated substitution of ordinary CGO by Hi-B and thin-gauge GOES in energy-efficient transformers, plus rising NGO demand from EV-drivetrain and wind-power generators.
— Reporting by Global Metals Desk
If you’d like, I can also adapt this into a shorter business brief, a formal academic summary, or add charts/data tables for a presentation.