[SMM Analysis] China's Grain-Oriented Silicon Steel Export Competitiveness Continues to Strengthen

Capacity Continues to Expand, China's Grain-Oriented Silicon Steel Exports Persist
In recent years, China's grain-oriented silicon steel capacity has continued to expand, while the pace of domestic demand absorption has slowed and market supply has become more ample. Backed by a mature and complete industry chain, stable quality, and cost advantages, the international competitiveness of domestically produced grain-oriented silicon steel has steadily improved. Coupled with incremental demand from power grid infrastructure and energy transition outside China, China's grain-oriented silicon steel exports have grown steadily, sustaining a long-term export-driven posture to absorb surplus capacity.

Grain-Oriented Silicon Steel Imports: Total Imports Decline, While Russian CGO Grain-Oriented Silicon Steel Flows into China Driven by Low-Cost Advantage
1. From the Perspective of Total Imports
From January to March 2026, grain-oriented silicon steel imports were lower than the same period in 2025. In April-May, imports began to rebound and exceeded the previous year's levels, with May imports reaching a new high for the year. From the perspective of import source structure, imports in January-May 2026 were highly concentrated. Imports of grain-oriented silicon steel from Russia towered over others, with Thailand and Taiwan, China forming the second-tier supply sources, while the Philippines, Malaysia, and Japan constituted the third tier. Imports from India, South Korea, Switzerland, and other countries were extremely low.

Data source: General Administration of Customs
2. By Specification
Wide-width grain-oriented silicon steel was mainly imported from Russia, with a total volume of 9,973.6 mt and an average price of only 4,580.5 yuan/mt, dominated by ordinary CGO. Imports from Japan and South Korea were relatively small, with significantly higher prices; the average price from Japan exceeded 15,600 yuan/mt, and the price spread for high-end wide-width material was notable.

Supply of narrow-width grain-oriented silicon steel was also concentrated. Thailand and Taiwan, China were the main sources, with imports of nearly 8,000 mt each and average prices of 5,200–5,700 yuan/mt. Russian narrow-width raw material averaged only 3,289.3 yuan/mt, serving as a low-cost supplement. Imports of high-end narrow-width silicon steel from Japan, India, Europe, and the US were extremely low. Average prices from India and Japan exceeded 37,000 yuan/mt, while imports from Switzerland, the US, and Germany were less than 1 mt, with average prices often reaching several hundred thousand yuan/mt.
Overall, Russian CGO grain-oriented silicon steel had a strong price advantage. Southeast Asia supplied mid-end conventional products, while Europe, the US, and Japan offered only limited volumes of high-end, high-grade material. Import costs varied widely, and the pattern of price differentiation by source was clear.

Data source: General Administration of Customs
Grain-Oriented Silicon Steel Exports: India Is China’s Largest Export Destination, with Purchases Far Exceeding Others
1. Total Export Volume
In 2026, grain-oriented silicon steel exports performed impressively in January-May, with monthly export volumes staying high and the ex-China market showing overall strong demand. On a monthly basis, export growth peaked in February, then slowed somewhat in March and April, with April having the highest export volume among the first five months. May exports pulled back slightly from April but stayed high, while YoY growth momentum recovered sharply and export prosperity rebounded notably.
Examining export destinations in January-May 2026, overseas demand was broadly distributed: India was China’s largest export destination for grain-oriented silicon steel, with purchases far exceeding those of other countries; Turkey and Italy ranked second and third, followed closely by Mexico and South Korea; Brazil, Slovenia, the UAE, Saudi Arabia, and Vietnam rounded out the top ten export destinations, covering South Asia, Europe, Latin America, the Middle East, and Southeast Asia.
Diversified and stable overseas purchasing demand provided solid support for export growth in January-May, and the YoY recovery in May exports confirmed the ample resilience of export orders.

Data source: General Administration of Customs
2. By sub-specification
Wide-width grain-oriented (GO) silicon steel has a large overall export scale. From January to May, China's GO silicon steel exports to India reached 66,534.6 mt, far ahead of others; Turkey and Italy ranked second and third, while exports to other countries such as Mexico, South Korea, and Vietnam all exceeded 10,000 mt. Average market prices varied significantly. Slovenia’s average purchase price of 14,883 yuan/mt was the highest for this category, while Brazil’s 9,509.3 yuan/mt was the lowest. For most countries, the average transaction prices were concentrated in the range of around 10,000 yuan/mt.
The export volume of narrow-width GO silicon steel has declined significantly, with exports to individual countries at only 575 to 1,083 mt. Ireland led slightly in exports, with its average price reaching 19,524.6 yuan/mt. South Korea and Brazil had relatively low purchase prices, below 10,000 yuan/mt, while average prices for other countries remained between 9,800 and 10,900 yuan/mt.
By comparison, wide-width GO silicon steel enjoys robust demand outside China and slightly higher cost-effectiveness, with total export volume far exceeding that of narrow-width small-size products. Although shipments of narrow-width silicon steel are low, high-end orders offer greater premium potential. Purchase volumes and transaction prices differ significantly across countries.

Source: General Administration of Customs
Summary
From January to May 2026, China's grain-oriented silicon steel imports and exports exhibited a diverging pattern of strengthening exports and shrinking imports. On the export side, monthly export volumes from January to May were all higher than the same period in 2025, with overall export sentiment improving. India was the largest export destination, followed by Turkey, Italy, Mexico, South Korea and others in the top ten, covering South Asia, Europe, Latin America and the Middle East, underpinned by a solid order base. Imports contracted YoY, as China's high-end grain-oriented silicon steel capacity has achieved large-scale import substitution, with only a few ultra-high-grade products still requiring imports, mainly sourced from overseas producers such as Japan. Overall, the export competitiveness of China's GO silicon steel has been continuously strengthening, and the import substitution process has been steadily advancing.