The China Iron and Steel Society Electrical Steel Branch recently released the production status of electrical steel in China from January to September 2018. In the first three quarters of 2018, China produced approximately 6.7419 million tons of non-oriented electrical steel, a year-on-year increase of 1.57%. This includes 5.4735 million tons of medium and low grade electrical steel, 0.8427 million tons of high grade electrical steel, and 0.4257 million tons of high-efficiency (high magnetic induction) electrical steel; approximately 0.9035 million tons of oriented electrical steel were produced, a year-on-year increase of 9.72% compared to 2017, including 0.2622 million tons of general oriented electrical steel (CGO) and 0.6413 million tons of high magnetic induction oriented electrical steel (HiB);
The main performance of China's electrical steel production in the first three quarters of this year is as follows:
I. Non-oriented electrical steel:
1. In the first three quarters of 2018, China produced approximately 6.7419 million tons of non-oriented electrical steel, a year-on-year increase of 1.57%, including 5.4735 million tons of medium and low grade electrical steel, 0.8427 million tons of high grade electrical steel, and 0.4257 million tons of high-efficiency (high magnetic induction) electrical steel;
2. As of the third quarter of 2018, there were approximately 21 non-oriented electrical steel production enterprises in China, with a dynamic production capacity of 10.82 million tons, a 2.2% increase compared to 2017. Among them, the capacity utilization rates of Sichuan Ruizhi, Tianjin Chenta, Huangshi Shanlixing Metallurgy, Zhejiang Xiehe Shouxin, Zhejiang Huaying Special Steel, Huaxi Cold Rolled Strip Steel, Xicheng Iron and Steel, Jiangsu Dalishen, Foshan Jinxi Jinlan, and Shunde Posco Steel Plate were relatively low, and production was unsaturated; Jiangyin Haida was shut down from January to September. This is preliminarily judged to be closely related to market demand, overcapacity of low-end products, and upgrading of downstream products;
3. The seven state-owned enterprises, Baowu, Taiyuan Iron & Steel, Shougang, Ansteel, Maanshan Iron & Steel, Baotou Steel, and Benxi Steel, produced a total of 5.0516 million tons, a year-on-year increase of 4.48% compared to 2017, accounting for 74.93% of the national non-oriented electrical steel production from January to September; a total of 14 joint ventures, mixed-ownership enterprises, collective enterprises, and private enterprises produced a total of 1.6903 million tons, a year-on-year decrease of 6.24%; from the production in the first three quarters of 2018, the output of non-oriented electrical steel from state-owned enterprises increased slightly compared to the same period in 2017, while the output of joint ventures, mixed-ownership enterprises, collective enterprises, and private enterprises decreased.
II. Oriented electrical steel:
1. In the first three quarters of 2018, China produced approximately 0.9035 million tons of oriented electrical steel, a year-on-year increase of 9.72% compared to 2017, including 0.2622 million tons of general oriented electrical steel (CGO) and 0.6413 million tons of high magnetic induction oriented electrical steel (HiB);
2. As of the third quarter of 2018, there were approximately 18 oriented electrical steel production enterprises in China, with a dynamic production capacity of 1.555 million tons, a year-on-year increase of 13.82% compared to 2017. Among them, the capacity utilization rates of Ansteel Group and Ningbo Yinye Innovation Materials Co., Ltd. were relatively low; Chongqing Wangbian Electric Power (Group) Co., Ltd., Jiangyin Senhao Metal Technology Co., Ltd., Fujian Jinglong Electric Co., Ltd., and Jiangsu Hubang Transformer Co., Ltd. are newly put into production enterprises in 2018 and are currently undergoing commissioning and production;
3. The three state-owned enterprises, Baowu, Shougang, and Ansteel, produced a total of 0.6671 million tons, a slight decrease of 0.1% year-on-year, accounting for 73.84% of the total national oriented electrical steel production. Fifteen private enterprises produced a total of 0.2364 million tons, a significant year-on-year increase of 51.88%; from the production in the first three quarters of 2018, a clear pattern of high-end and low-end products has emerged. Baowu and Shougang both use low-temperature billet heating technology to produce high magnetic induction oriented electrical steel (HiB), while private enterprises use medium and high-temperature QRD technology to produce general oriented electrical steel (CGO). Compared with the same period in 2017, the output of state-owned enterprises remained basically stable, while the output of private enterprises increased significantly, with an overall increase of more than 50%, showing a large increase.
Table 1 Regional distribution of non-oriented electrical steel production in China in the first three quarters of 2018
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