Chen Zhuo, expert advisor to the science, technology and environmental protection department of the China Iron and Steel Association (CISA) and former secretary-general of the electrical steel branch of the Chinese Society for Metals (CSM), has forecast that by the year of 2030, the global energy transition will drive electricity demand to rise by 1.2-1.3-fold, while increasing demand by 1.7-2.1-fold by 2040. In particular, China’s demand for grain-oriented silicon steel is likely to amount to approximately 3.5-4.0 million mt, while its demand for non-grain-oriented silicon steel is expected to reach 13.0-15.0 million mt by 2040.
Beijing-based Chinese steelmaker Shougang Co., Ltd recently discussed the industrial development of grain-oriented silicon steel and non-grain-oriented silicon steel at its earnings conference.
According to Shougang, in 2025 China’s production capacity of grain-oriented silicon steel amounted to 3.74 million mt, up 10.6 percent year on year, while the capacity is likely to see a year-on-year rise in 2026. Furthermore, during the 15th Five-Year Plan period, investment in the power sector in China is anticipated to reach RMB 4.0 trillion ($0.6 trillion), representing an increase of 40 percent compared to the previous five-year period. The upgrading and renovation of aging power grids and the construction of data centers in developed countries such as Europe and the United States will drive a substantial increase in the scale of investment in power supply. Driven by the above-mentioned demand, demand for grain-oriented silicon steel is expected to maintain a stable growth. Domestic demand for grain-oriented silicon steel is likely to exceed 4.5 million mt by 2030, Shougang stated.
