HS Code:
Grain-oriented electrical steel (GOES), classified under HS Code 7225.11 and 7226.11, is a specialized type of steel used primarily in the production of transformers, electric motors, and other electromagnetic devices due to its high magnetic permeability and low core loss. This category includes flat-rolled products of silicon-electrical steel, with a silicon content of more than 0.6%, designed to optimize magnetic performance in specific directions. GOES is critical to the energy sector, particularly in power generation and distribution systems, making it a strategically important material in global trade.
Total Trade Volume
USD 3.2 billion
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
USD 800 million
25.0% of total trade of total trade
Increasing
USD 650 million
20.3% of total trade of total trade
Increasing
USD 500 million
15.6% of total trade of total trade
Stable
USD 400 million
12.5% of total trade of total trade
Stable
USD 350 million
10.9% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
25% (imposed by certain countries under anti-dumping measures)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rising demand for energy-efficient transformers
Increased global demand for GOES due to renewable energy projects and grid modernization, especially in developing economies.
2021-2023
Shift towards sustainable production
Manufacturers are adopting greener production technologies to reduce carbon footprints, influencing trade patterns with a preference for eco-certified products.
2022-2023
Supply chain disruptions
Geopolitical tensions and raw material shortages have led to price volatility and delays in GOES supply, affecting trade volumes.
2020-2022
The United States imposed additional tariffs on GOES imports from certain countries under Section 232, citing national security concerns.
March 2023
Increased costs for US transformer manufacturers and potential retaliation from affected exporting countries.
The European Union initiated an anti-dumping investigation into GOES imports from Asia, aiming to protect domestic producers.
June 2022
Possible imposition of duties could reshape trade flows within the region, benefiting EU producers.
Leading producers in Japan and South Korea announced breakthroughs in thinner, more efficient GOES, reducing energy loss in transformers.
September 2023
Likely to increase market share for these countries as demand for high-efficiency materials grows.