Posted on 01 Nov 2024
Eectrical steel is a special alloy, suitable for electromagnetic equipment cores such as motors, generators, and transformers, as it reduces power loss. It is an iron alloy with silicon as the main added element (replacing carbon). The specific formulation is customized according to the required magnetic properties, typically featuring advantages such as small hysteresis area, low power loss per cycle, low core loss, and high permeability.
In international trade, silicon steel products are rolled flat materials, distinguished by a width of 600 millimeters.
The upstream and downstream industries of silicon steel are closely related. The upstream sectors include ore mining and smelting, especially the supply of high-purity iron ore and materials containing silicon elements. The downstream industries primarily include the power equipment manufacturing sector, such as transformers, generators, and electric motors. These industries have significant demand for silicon steel, particularly in the context of expanding and upgrading power infrastructure, which has driven a continuous increase in silicon steel demand. Globally, major silicon steel producers include Japan’s Nippon Steel, Korea’s POSCO, and China’s Baosteel Group.
In Vietnam, the application of silicon steel is mainly concentrated in the machinery manufacturing and power equipment sectors. According to the analyst, in recent years, Vietnam’s industrialization process has accelerated, with the government heavily investing in infrastructure development and upgrading the domestic power transmission and distribution network. Meanwhile, the increased demand for efficient electric motors and generators in industries such as electronics, household appliances, and automobiles has further boosted silicon steel demand.
However, Vietnam's local production capacity is limited due to lack of the necessary steel industry foundation, technology, and equipment, especially in producing grain-oriented silicon steel, which requires advanced technical standards. Also, Vietnam’s smelting technology and equipment have not yet fully met these requirements. Furthermore, Vietnam’s limited resources of high-quality iron ore are insufficient to support silicon steel production, making large-scale production of such products less cost-effective. Therefore, Vietnam’s silicon steel market demand is mainly reliant on imports.
Based on the data, Vietnam’s total silicon steel imports exceeded USD 170 million in 2023, with imports of silicon steel over 600 mm in width accounting for more than USD 100 million. From January to June 2024, Vietnam’s cumulative silicon steel imports surpassed USD 90 million, and the import volume is expected to maintain a steady growth rate in the coming years.
The analyst indicates that the main sources of Vietnam’s silicon steel imports between 2021 and 2024 include China, Japan, and Singapore. Key exporters to Vietnam include companies such as CORE STEEL CO., LTD, SUMITOMO CORPORATION TAIWAN LTD, and BAOSTEEL SINGAPORE PTE LTD.
The primary importers of silicon steel in Vietnam are related to the steel processing, machinery manufacturing sectors, as well as distributors and wholesalers. According to the analyst, these companies are mostly foreign-invested enterprises, including JFE SHOJI STEEL VIETNAM CO., LTD, TOSHIBA INDUSTRIAL PRODUCTS ASIA, and POSCO VIETNAM PROCESSING CENTER CO., LTD.
Overall, as Vietnam's economy develops, with rising per capita income levels and an expanding consumer goods market, its related manufacturing industries are also advancing. Silicon steel, as an essential material, holds a significant position in the industrial development of both Vietnam and the global market. The analyst forecasts that Vietnam's Silicon steel imports will continue to grow in the coming years.
Source:GlobeNewswire
