HS Code:
Silicon electrical steel sheets and strips, classified under HS subheadings 7225.11.00, 7225.19.00, 7226.11.10, 7226.11.90, 7226.19.10, and 7226.19.90, are specialized flat-rolled products of alloy steel containing silicon. These materials are primarily used in the manufacture of electrical equipment such as transformers, electric motors, and generators due to their high magnetic permeability and low core loss, which enhance energy efficiency. The product category is divided into grain-oriented (GO) and non-grain-oriented (NGO) types, with GO being used in high-efficiency transformers and NGO in rotating machinery. Global trade in this category is driven by demand in energy infrastructure, renewable energy systems, and automotive electrification.
Total Trade Volume
Approximately $8.5 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$2.1 billion USD
24.7% of total trade of total trade
Increasing
$1.5 billion USD
17.6% of total trade of total trade
Stable
$1.2 billion USD
14.1% of total trade of total trade
Increasing
$800 million USD
9.4% of total trade of total trade
Stable
$650 million USD
7.6% 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 or USMCA)
Rising demand for energy-efficient transformers
Increased production and trade of grain-oriented silicon steel due to global push for renewable energy and grid modernization.
2021-2023
Growth in electric vehicle (EV) production
Higher demand for non-grain-oriented silicon steel for electric motor cores, boosting trade in automotive-focused markets like South Korea and Japan.
2022-2023
Supply chain diversification
Countries are seeking alternative suppliers outside China to mitigate risks from geopolitical tensions and trade disputes, benefiting producers in Europe and South Korea.
2020-2023
The United States extended tariffs on steel imports, including silicon electrical steel, under Section 232, citing national security concerns.
February 2023
Increased costs for US importers and potential shift of supply chains to tariff-exempt countries under trade agreements.
The European Union initiated an anti-dumping investigation into silicon electrical steel imports from China, suspecting unfair pricing practices.
June 2022
Potential imposition of additional duties could reduce Chinese market share in the EU, benefiting domestic and other Asian suppliers.
Major Japanese steel manufacturers announced investments in advanced production technologies for high-grade silicon electrical steel to meet rising global demand.
October 2023
Strengthens Japan’s position as a leading exporter and innovator in the market, potentially increasing trade volumes.