Polish silicon steel sector

DEFINITIONS

Electrical steels consist of two main product groups which differ according to their metallic structure, magnetic properties and thus applications:

• Oriented (transformer) steels, produced from low carbon steel of approx. 3% silicon content. These steels are principally used for the production of high power transformer cores or for distribution transformers.
• Non-oriented (dynamo) steels:
  - Either high alloy steels containing up to 3% Si and 1% Al, characterised by low transmission loss
  - Low alloy, lower Si/Al regular core loss steels
  - Both are the basic building blocks for magnetic circuits in rotating machinery and for small transformers (low power transformer cores).

TRADE CLASSIFICATION

Trade classifications numbers for silicon steel according to Polish ‘Kod Materialowo Handlowy’ are defined.

CONSUMPTION LEVELS & CHARACTERISTICS

Consumption figures for Poland covering cold rolled electrical steels are shown. The demand level for the period 2001-2004 was ~45-70kt silicon steel / year.

Characteristics of the Polish cold rolled electrical steel market:
- 2/3rds of demand is for dynamo steel, 1/3rd for transformer steels
- Exports showing a strong declining trend
- Demand supply is monopolised by Stalprodukt
- Hot rolled sourcing for transformer steels is from Sendzimira; for dynamo steels is from imports (VSZ, Slovakia).

TRADE PERSPECTIVES

Analyses in the report [pages 7 & 8] show recent trade volumes.

Regarding exports,

- Cold rolled steel dominate export volumes.
- Relatively low hot rolled exports evident in recent years.
- Both transformer and dynamo export volumes in decline.

Regarding imports,

- Import volumes constant at ~50 kt/yr since 2001.
- Dynamo steels dominate imports: mostly hot, some cold.
- Transformer steel import volumes negligible.

OTHER INFO

Routes to market [proportion of direct, indirect sales (via traders) to customers] are also shown.
Largest buyers of electrical steel in Poland are identified (see slide 10 of the report).

OPPORTUNITIES

Can MCI assist you with an entry strategy into this sector?
For further information, please visit

Website: http://www.steelonthenet.com/consulting.html
or contact MCI@steelonthenet.com
or call +44 775 149 0885.

For full report, see pdf attachment or slides.