Electrical steel, also known as silicon steel or laminated steel, is a specialty steel with improved magnetic properties that make it valuable in electrical applications. It has low hysteresis and eddy current losses, and high permeability which makes it ideal for use in transformers, motors, generators, and other electromagnetic devices. Electrical steel is made primarily from iron and silicon, with trace amounts of other elements added to achieve the desired properties.


Manufacturing Process

 

The core manufacturing process for electrical steel involves hot rolling iron alloyed with around 1-6% silicon. The silicon improves electrical resistivity and reduces core loss during use. The hot rolled strip is then cold rolled to reduce thickness and increase grain refinement for improved magnetic properties. Heat treatment or annealing may be performed to optimize the crystalline structure and permeability. The cold rolled strips are then coated and insulated using materials like resin to prevent oxidation and minimize eddy current loss. Finally, the insulated strips are cut, stacked, and pressed together to form a laminated steel sheet suitable for cores.


Material Properties And Philippines Electrical Steel

 

Philippines manufacturers produce a range of electrical steel grades optimized for different applications. The primary grades are:

 

- Non-grain oriented (NGO) steel - Has an isotropic magnetic structure without a preferential grain direction. Used in motors and generators where directionality is not important.

 

- Grain oriented (GO) steel - Crystalline grains are preferentially aligned for maximum permeability in one direction during manufacturing. Used in transformer cores where directionality enhances efficiency.

 

- High permeability (H) steel - Offers extremely high permeability but little other advantages. Used only in specialized applications.


Electrical steel sheets have tight specifications regarding yield strength, watt loss, specific loss, and other electromagnetic properties to ensure consistent performance in high frequency use. Proper mechanical and material treatments result in steels with resistivity of 70-120 μΩ-cm, permeability of 2500-5000, and core losses below 1 W/kg at industrial frequencies.


Electrical Steel In The Philippines

 

The Philippines has emerged as an important producer and supplier of grain-oriented electrical steel in recent years, accounting for around 5% of global supply. The country has advantageous factors like proximity to major s, low shipping costs, and competitive prices. Several leading steelmakers like Nippon Steel and JFE Steel have set up production facilities here. Key aspects of the Philippines electrical steel include:


Growing Domestic Demand

 

With rising investments in power infrastructure and an expanding manufacturing sector, the local demand for electrical steel is increasing at a healthy pace of 5-7% annually. This growing indigenous consumption serves as a base support for Philippines producers.

Cost Competitiveness


By leveraging affordable labor and favorable government policies, Philippines manufacturers can offer electrical steel products at rates 10-15% lower than competitors while maintaining consistent quality standards. This competitive pricing drives sales in both domestic and export.



Presence Of Major Global Producers

 

The participation of large international corporations like Nippon, JFE, and Baoshan has resulted in technology transfers and adoption of strict quality controls. It has elevated the Philippines to global standards of excellence. Local talent is being developed in collaboration with these firms.


Export Orientation


Over 80% of production is exported with leading s being China, Japan, Korea, and other Southeast Asian nations. Positive trade relations and proximity to fast growing Asian economies benefits export potential.


Environmental Compliance


While impacts from electrical steelmaking like air emissions are managed, producers are also increasingly adopting clean technologies and renewable energy to reduce footprint. Compliance with global green norms is important both locally and for exports.


The continued investments in capacity building, R&D infrastructure and skilling programs are expected to enable greater complex alloy development and high-end product differentiation from Philippines suppliers. As the quality edge strengthens while competitive costs are retained, export volumes are projected to grow at 7-9% annually over the medium term. Overall, the electrical steel sector will be a major factor augmenting the broader manufacturing and economy of the Philippines for years to come.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

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