Shougang shares: the output of high-grade non-oriented electrical steel and thin-gauge oriented electrical steel for new energy vehicles can not meet the market demand.

On January 20, Shougang disclosed the record table of investor relations activities, in which the announcement revealed the current production and operation status and future development plan of Shougang in 2021 for new energy automobile electrical steel. at the same time, the operation status and planning of hot-based galvanizing product line are revealed.

Shougang said that the production of electrical steel was stable in 2021, with an annual production of about 1.5 million tons. By continuously optimizing the product structure, the sales of high-grade non-oriented electrical steel increased by about 25% compared with the same period last year, the sales of electrical steel for new energy vehicles increased by about 230% year-on-year, and the sales of oriented electrical steel 0.23mm and below thin specification products increased by about 26% compared with the same period last year. However, at present, the output of high-grade non-oriented electrical steel and thin-gauge oriented electrical steel for new energy vehicles can not meet the market demand.

Shougang said that in terms of market demand, with the promotion of the national "double carbon" strategy and energy consumption double control policy, the electrification and electrification level of the whole society will be improved. Electrical steel products in power generation, transmission, distribution, power consumption and other applications show a continuous expansion trend, the downstream market demand for high-end, efficient, high-grade electrical steel products, and will further develop in the direction of energy saving and high efficiency. According to the growth of the power industry and related industrial policies, it is predicted that by 2025, the domestic demand for high-grade non-oriented electrical steel will reach about 4.5 million tons, the demand for high magnetic induction oriented electrical steel will reach more than 1.6 million tons, and the global electrical steel for new energy vehicles will reach more than 1 million tons.

Shougang has made plans in advance. It is expected that the Shougang non-oriented electrical steel project for new energy vehicles will be put into production in June this year, with an annual production capacity of 350000 tons of high-grade non-oriented electrical steel for new energy vehicles. The second phase of the oriented electrical steel project has begun construction. It is expected to be put into production in the first half of 2023, with an annual production capacity of 90, 000 tons of ultra-thin oriented electrical steel. In addition, according to the market demand and the situation of receiving orders, we will start the construction of supporting production lines in time, and continue to increase the production capacity of high-grade non-oriented electrical steel and thin-gauge oriented electrical steel to meet the needs of high-end customers. It is estimated that the total output of the company's electrical steel will reach 20-2.5 million tons in 2025, of which oriented and high-grade non-oriented electrical steel accounts for more than 70%.

In addition, Shougang's hot-based galvanizing production line (zinc-aluminum-magnesium coating) has a design capacity of 500000 tons / year, and the output of the production line in 2021 has exceeded the design capacity. 80% of the products produced are used in the photovoltaic industry, leading the market share in China. Shougang said that it will continue to dig deep into the production line capacity, continue to optimize the product structure in accordance with national policy requirements, vigorously develop high-strength, lightweight and corrosion-resistant zinc-aluminum-magnesium coating products, and further expand the application fields of such products, promote the formulation of relevant industry standards, and make their own contributions to the upgrading of the national manufacturing industry and the implementation of the dual-carbon strategy.