[SMM Analysis] Analysis of China's Non-oriented Electrical Steel Imports and Exports

[SMM Analysis] Analysis of China's Non-oriented Electrical Steel Imports and Exports

Before 2021, China was a net importer of non-oriented electrical steel, with import volumes consistently exceeding export volumes. However, since 2021, as domestic production capacity for non-oriented electrical steel has increased, China has become a net exporter, with export volumes surpassing import volumes.

• From the perspective of total imports

Specifically, in recent years, China's imports of non-oriented electrical steel have continued to decline. The total imports for the entire year of 2023 were 119,000 mt, while by the end of 2024, the total imports for the year were only 76,100 mt, representing a 36% YoY decrease. As of the first five months of 2025, the current total imports were only 26,100 mt, far below the average for the same period, with nearly all monthly YoY comparisons showing negative growth trends.

Data source: General Administration of Customs

• From the perspective of total exports

Exports increased from 74.37 mt in 2023 to 805,100 mt in 2024, representing an 8% YoY increase. As of the first five months of 2025, the current total exports were 343,100 mt, with export volumes still showing an expansion trend.

Data source: General Administration of Customs

• From the perspective of import origins

The main import origins for China's non-oriented electrical steel are Japan, Taiwan, China, South Korea, Sweden, France, and Germany. The number of import origins is relatively small. Among these, compared to the same period last year, Germany and India still maintained relatively high growth trends in imports, at +88% and +50%, respectively. (Note: According to Article 9 of the "Regulations of the People's Republic of China on Customs Statistics," imported goods are statistically recorded based on their country (region) of origin, while exported goods are recorded based on their final destination country (region). For goods imported into China that are originally produced in mainland China, they are statistically recorded under China, with country code 142. Similarly, for goods imported from Hong Kong, Macau, and Taiwan regions of China, they are statistically recorded under Hong Kong, China; Macau, China; and Taiwan, China, respectively.)

Data source: General Administration of Customs

• From the perspective of export destinations

The main export destinations for China's non-oriented electrical steel are the US, Vietnam, India, Mexico, and Italy, with export destinations being widely distributed. Moreover, compared to the same period last year, nearly all showed growth trends, with the highest growth rates observed in Belgium, Vietnam, and Brazil, at +191%, +82%, and +39%, respectively.

Data source: General Administration of Customs

Analyzing the main export destinations for the entire year of 2024, India was China's largest exporter of electrical steel, accounting for 18% of the total. This was primarily due to the undersupply of high-end steel in India, which struggled to meet the steel demands of manufacturing enterprises in the country in terms of both quantity and quality, leading to a significant import of China's electrical steel. Following India were Mexico and Vietnam, each accounting for 11%, and Italy accounting for 8%. In addition, the top ten export destinations also included South Korea, the US, Brazil, Turkey, Thailand, and Belgium.

Data source: General Administration of Customs

In recent years, the production capacity of China's non-oriented electrical steel industry has continued to grow, mainly due to the rapid expansion of downstream market demand for electric vehicles, new energy equipment, and high-efficiency motors. To meet the demands of these high-efficiency and energy-saving applications, major domestic electrical steel producers have continuously upgraded their technologies and expanded their production lines, increasing the production capacity of high-grade non-oriented electrical steel. Based on the continuous increase in domestic production capacity, it is expected that China's non-oriented electrical steel export volumes will continue to expand in the future.