Market Insight: M36 Silicon Steel for Power Industry

Market Analysis: Sourcing High-Quality M36 Silicon Steel for Power & Distribution Transformers

Global Demand Outlook

Grid-expansion (IEA forecast: 80 MVA of new transformer capacity by 2030) and the replacement of 20- to 40-year-old units are driving annual electrical-steel consumption past 15 Mt. M36 non-oriented grades—0.27 mm to 0.35 mm, 2.8–3.2 % Si—are the work-horse core material for ≤ 72 kV distribution transformers and small power units (< 10 MVA) because they balance low core loss (≈ 3.6 W/kg @ 1.5 T, 50 Hz) with moderate magnetising power. OEMs are under regulatory pressure (EU Eco-design 2019/1783, DOE 2016 CFR §431) to cut no-load losses 15–30 %; every 0.1 W/kg reduction in M36 core loss translates to ≈ 0.9 % efficiency gain in a 1 MVA transformer, worth US$ 350/annum in avoided losses. Consequently, buyers are shifting from spot-market coils to mill-certified, laser-scribed, fully processed M36 with guaranteed magnetic properties.

Why Purity & Geometry Dominate Transformer Economics

Loss Component	Root Cause	Material Counter-measure	Typical Saving
Hysteresis	C, N, S inclusions > 30 ppm	Vacuum-degassed melt, [C] ≤ 25 ppm	0.25 W/kg
Classical eddy current	Thick gauge, poor insulation	0.27 mm M36 + 2 µm MgO-phosphate coating	0.18 W/kg
Anomalous eddy current	Large grain size scatter	Continuous annealing 860 °C, H₂ 75 %	0.12 W/kg
Build-factor	Burr > 5 µm, wavy lamination (I-unit > 5)	Precision slitting Ra ≤ 1 µm, tension levelling	0.08 W/kg

Total stack-up: 0.63 W/kg—enough to move a 500 kVA transformer from Tier-2 to Tier-1 efficiency and qualify for preferential utility tariffs.

Sourcing Reality: Price vs. Performance

Western mills (AK Steel, Thyssen, NLMK) quote US$ 2.4–2.8 /kg FOB for fully processed M36 with 6-week lead-times; freight and anti-dumping duties can lift landed cost to US$ 3.2 /kg. In contrast, integrated Chinese producers—Baosteel, Shougang, and specialised slitters such as Luoyang Xinzhaohe—deliver equivalent magnetic characteristics at US$ 1.9–2.1 /kg CFR main ports, with 3-week lead-times and 5–25 t MOQ. The key is to bypass traders and contract directly with factories that control the full process chain: pickling → 20-Hi cold rolling → decarburising anneal → tension levelling → insulation coating → precision slitting. ISO-9001 / IATF 16949 certification plus third-party witness testing (IEC 60404-2) are non-negotiable.

Luoyang Xinzhaohe Value Proposition

Located 150 km from the Baosteel CRGO hub, we have 20+ years of transformer-material experience and a 30 000 t/y slit-to-size line dedicated to M19–M43 grades. Core competencies in-house:
Slitting: Burr ≤ 5 µm, camber ≤ 0.3 mm/2 m, width tolerance ±0.05 mm on 50–1 250 mm strips.
Stress-relief annealing: 800 °C, 100 % H₂, dew-point –50 °C; removes 90 % of punching stresses, restoring permeability by 8–10 %.
Insulation coating: C-5 (chromium-free) or C-6 high-punchability varnish, 0.8–1.2 µm per side, inter-lamination resistance ≥ 30 Ω·cm².
Precision cutting: Length tolerance ±0.2 mm, angle 90° ±0.05°, ready for robotic stacking.

Every coil is supplied with a magnetic test certificate (core loss @ 1.5 T, 50 Hz; B800 ≥ 1.66 T; lamination factor ≥ 97 %) and full traceability heat number. Lead-time: 10–15 days ex-works Luoyang; payment: 30 % T/T, balance against B/L. For transformer OEMs and motor repair shops seeking Tier-1 performance without Tier-1 pricing, Luoyang Xinzhaohe offers a factory-direct, engineering-backed alternative to high-cost Western supply.

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Technical Specs: M36 Silicon Steel Parameters

M-36 Non-Oriented Silicon Steel – Technical Specifications & Code Compliance

(Luoyang Xinzhaohe Plant Standard LXZH-ES-M36-2024, 20-year transformer-material benchmark)

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H3 Critical Magnetic & Physical Parameters

Parameter (50 Hz, 1.5 T)	ASTM A677-23	IEC 60404-8-4	LXZH M-36 Internal Target	Test Method
Core Loss, P1.5/50	≤ 4.30 W/kg	≤ 4.10 W/kg	3.85 ± 0.15 W/kg	Epstein, 25 cm
Core Loss, P1.0/400	—	≤ 22 W/kg	19.5 ± 1 W/kg	SST 500 mm
Polarization J5 000	≥ 1.60 T	≥ 1.62 T	1.64 ± 0.01 T	25 cm Epstein
Permeability µmax	—	≥ 3 000	3 300 ± 200	25 cm Epstein
Specific resistivity	48–55 µΩ·cm	48–55 µΩ·cm	52 ± 1 µΩ·cm	Four-point
Density	7.65 g/cm³	7.65 g/cm³	7.65 g/cm³	ASTM A34
Lamination thickness	0.35 mm nom.	0.35 mm nom.	0.35 ± 0.01 mm	Laser micrometer
Width tolerance, slit	—	± 0.10 mm	± 0.05 mm	3-line CCD
Burr height	≤ 0.03 mm	≤ 0.025 mm	≤ 0.015 mm	Stylus profilometer
Stacking factor	≥ 97 %	≥ 97 %	97.8 %	10 kN clamp
Lamination flatness*	≤ 1.5 mm/m	≤ 1.5 mm/m	≤ 1.0 mm/m	Optical table, 1 m gauge

Flatness measured after stress-relief anneal at 820 °C, 100 % H₂, 4 h.

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H3 Insulation Coating System – Heat-Resistant C-5

Property	ASTM A976	IEC 60404-1-1	LXZH C-5 Result
Coating type	Inorganic + organic, Cr-free	Same	Cr-free, high-phosphate
Thickness per side	0.8–1.2 µm	0.8–1.2 µm	1.0 ± 0.1 µm
Insulation resistance (Franklin)	≥ 15 Ω·cm²/ply	≥ 15 Ω·cm²/ply	22–28 Ω·cm²/ply
Weldability (spot)	≥ 800 A	—	1 000 A no porosity
Burn-off temp.	≥ 730 °C	≥ 730 °C	750 °C
Edge coverage	≥ 95 %	≥ 95 %	98 % automatic E-coat

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H3 Why Burr & Coating Uniformity Dictate Reliability

1. Burr > 25 µm: local air gap → 3–5 % higher exciting current, hotspot ∆θ ≈ 8 °C → 50 % insulation life loss (Arrhenius rule).
2. Patchy insulation: inter-laminar voltage > 1 V/ply during impulse test → spark erosion → metallic bridging → core short.
3. Poor flatness: waviness > 1.5 mm/m gives 5–7 % increase in audible noise (dB(A)) and 2 % core-loss penalty due to clamping stress.

LXZH slits with 0.015 mm burr max, then strand-anneals at 820 °C under 100 % H₂ to remove cutting stresses; final tension-leveling holds flatness ≤ 1 mm/m. Every 5-ton coil is 100 % Franklin-tested before dispatch—no spot < 20 Ω·cm² accepted.

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H3 Code & Mill Certificates Supplied

ASTM A677-23, A976-22
IEC 60404-8-4:2022, 60404-1-1:2020
RoHS/REACH, China GB/T 2521.2-2020
Mill test sheet includes Epstein coils, SST 500 mm data, coating SEM micrograph, and burr map—downloadable via QR code on each package.

Western mills quote USD 2.4–2.8 /kg ex-works for comparable grade; Luoyang Xinzhaohe delivers at USD 1.75 /kg FOB Shanghai with identical magnetic performance and tighter geometry—20+ years of transformer-line data to prove it.

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Factory Tour: Manufacturing M36 Silicon Steel

Manufacturing Process & Quality Control

Luoyang Xinzhaohe Aluminum Co., Ltd. – Transformer Materials Division

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Process Flow: Slitting → Annealing → Insulation Coating → Precision Cutting

Every M36 non-oriented coil delivered from our Luoyang works is produced on a closed-loop line that was purpose-built for electrical steels. The sequence below is locked by PFMEA; no coil is released until all 23 CTQ (Critical-to-Quality) checkpoints are within ±1 σ of the control plan.

Stage	Key Equipment & Parameters	CTQ Monitored	Typical M36 Target
1. Slitting	0.02 mm clearance CNC slitter, 200 m min⁻¹ max, burr ≤ 5 µm	Width tolerance, burr height, edge camber	±0.05 mm, ≤5 µm, ≤0.3 mm/500 mm
2. Decarb & Stress-relief Anneal	100 % H₂, 820 °C, 60 s soak, dew-point –40 °C	Core loss @ 1.0 T/50 Hz, grain size	≤2.90 W kg⁻¹, 30–50 µm
3. Insulation Coating	Roll-coat, 1.2 µm C-5 organic-inorganic, 350 °C flash	Coating thickness, insulation resistance, weldability	1.0–1.4 µm, ≥30 Ω·cm²/ply, no peel
4. Precision Cutting	300 kN lamination press, ±10 µm feed, 120 ppm	Stacking factor, burr, dimensional CpK	≥98 %, ≤8 µm, CpK ≥1.67

Online gauges (BURR-CAM, LAS thickness) stream data to the MES every 50 ms; alarms auto-stop the line if any CTQ drifts.

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Quality-Control Protocol (ISO 9001 + IEC 60404-8-8)

Checkpoint	Frequency	Instrument	Acceptance
Strip profile	Coil head/mid/tail	3-line laser	Crown ≤0.5 %
Core loss (W/kg @1.0 T, 50 Hz)	Every 5 t	Brockhaus SST	≤2.90
Tensile strength	Every coil	Zwick 100 kN	360–440 MPa
Coating insulation	Every 200 m	Franklin tester	≥30 Ω·cm²/ply
Lamination burr	1 % sampling	Keyence 3D	≤8 µm

All data are stored under a 15-year coil ID; traceability report ships with every delivery.

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Luoyang Xinzhaohe Standard vs. Common Market Quality

Property	Unit	Luoyang Xinzhaohe M36	Typical China Export M36	Western Premium M36
Core loss @1.0 T / 50 Hz	W kg⁻¹	2.85 ± 0.05	3.10–3.40	2.80 ± 0.05
Magnetic polarisation @5000 A m⁻¹	T	1.66	1.63–1.64	1.67
Stacking factor	%	≥98	96–97	≥98
Thickness tolerance	mm	±0.008	±0.015	±0.005
Burr after punch	µm	≤8	15–25	≤5
Coil I-unit (shape)	–	≤3	5–10	≤2
Price FOB Shanghai	USD/t	≈ 1 050	900–1 000	1 350–1 550

Interpretation: Our process window is intentionally tightened to Western levels while staying cost-competitive with domestic exporters. Transformer builders obtain 3–4 % lower building factor, which translates into 2 °C hotspot reduction or 15 kVA up-rate without redesign.

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Take-away for Buyers

Factory-direct: No trader margin; technical team talks straight to your winding engineers.
20+ years transformer heritage: We speak the same language—core-loss curves, annealing fingerprints, lamination weld schedules.
Premium alternative: Western quality at China landed cost, 6-week ex-mill lead time on 5–300 t orders.

Send us your lamination drawing and target loss; we will return a slitting & cutting plan with guaranteed magnetic data within 24 h.

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Packaging & Global Logistics

Export Packaging & Logistics

Luoyang Xinzhaohe Aluminum Co., Ltd. – 20+ years transformer-grade silicon steel, factory-gate Luoyang, Henan, China.

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H3 1. Packaging Engineering for M36 Silicon Steel

Configuration	Stack Weight	Moisture Barrier	Mechanical Fixation	VCI & Desiccant	Typical 20′ FCL Payload
Slit Coil ≤ 300 mm width	3–5 t	80 μm PE shrink film + woven outer, heat-sealed	Fumigated pine pallet, 3 steel straps + edge boards	8 sachets CaCl₂ (100 g each), 2 VCI emitters	25 t net
Master Coil 800–1 250 mm	8–12 t	0.15 mm Al-foil laminate, vacuumed	Wooden cradle, 4-way entry, 6 steel straps + corner protectors	1 kg mixed desiccant bag, 4 VCI disks	22 t net
Sheet / Lamination (≤ 0.35 mm)	1–2 t per pallet	Interleave 0.05 mm防锈纸, PE liner	Pallet box, cross-brace, top deck	6 VCI tablets per 500 kg	20 t net

Key Points
All timber ISPM-15 heat-treated, branded HT-DL-22-001.
PE film < 0.3 g/cm² moisture transmission; joints triple-taped.
Strapping tension 2 000 ± 100 N; avoided ovalisation that degrades winding fit-up.
Desiccant quantity calculated for 45 days at 90 % RH, safety factor 2.

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H3 2. Sea-Freight Protection Protocol

Hazard	Control Measure	Verification
Salt-laden humidity	Vacuum-Al-foil + VCI; container desiccant strip 2 kg/20′	Moisture cards inspected at load & discharge; ΔH₂O ≤ 3 %
Mechanical dent	Coil-eye aligned to container corrugation; 5 cm EPS side blocks; dunnage airbags inflate 0.2 bar	Pre-load photo report, shock indicator labels
Magnetic property drift	No magnetic lifting after final anneal; wooden spacer keeps ≤ 0.5 mm gap between coils	Random core-loss re-test on arrival: P₁.₇/50 Hz ≤ 0.9 × spec
Cargo sweat	Container floor moisture ≤ 18 % w/w; loading RH < 65 %	Handheld hygrometer log signed by QC & driver

Labeling & Traceability
Each package carries weather-proof tag: heat number, grade (M-36), core-loss class, net/gross mass, slit width ± 0.1 mm. QR code links to mill test certificate EN 10204/3.1.

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H3 3. Door-to-Door Logistics Matrix

Destination	Transit Time (days)	Carrier Alliance	CIF Range* (USD/t)	Incoterm Options
NA East Coast	26–28	COSCO/OOCL	95–110	FOB, CIF, DDP bonded warehouse
EU North Range	32–34	MSC	90–105	FOB, CFR, DAP plant
Middle East	18–20	ESL, PIL	70–80	FOB, CIF Jebel Ali
South America	38–42	CMA-CGM	120–135	FOB, CFR

*Valid Q3-2024, basis 20′ FCL, bunker 550 USD/t, subject to confirmation.

Value Advantage
Luoyang rail siding → Qingdao port 480 km, 18 h block-train, CO₂ footprint 0.04 t per t cargo versus 0.12 t for inland Europe mill. Combined with zero-trader margin, landed cost typically 12–18 % below Western M36 quotation while meeting identical IEC 60404-8-7 magnetic specs.

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H3 4. Documentation & Compliance Pack

Mill Test Certificate: core loss, B₈₀₀, lamination factor, surface insulation resistance.
SGS or BV preshipment inspection (optional, no extra cost for ≥ 50 t orders).
China Origin Form-A or CO for preferential tariff.
SDS, RoHS & REACH statement (steel exempt, coating Cr⁶-free).
Packing list, high-resolution loading photos, bill of lading telex-release within 24 h vessel departure.

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Contact
📧 export@xzh-alu.com | 📞 +86-379-6583-7722
Precision slitting, annealing, coating & cutting – all under one roof in Luoyang.

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Sourcing from Luoyang Xinzhaohe

Why Partner with Luoyang Xinzhaohe for M36 Silicon Steel

20-Year Transformer-Grade Track Record

Since 2003 we have supplied >180 kt of non-oriented and grain-oriented electrical steels to Tier-1 transformer OEMs, motor rewind shops and power-grid EPCs. Every coil is processed in our Luoyang plant—no trading middle-men—so magnetic properties, surface insulation and slit-width tolerances are controlled under one roof. Our internal database now holds 2 400 statistically-valid core-loss curves for thicknesses 0.23–0.50 mm, allowing us to pre-emptively match your design λ (w/kg) target instead of forcing you to over-specify grade or over-pay for Western label steel.

Direct Factory Price Advantage

Eliminating distributor margin alone saves 8–14 %. More importantly, our vertical integration—pickling → tandem cold rolling → decarburizing/anneal → MgO + insulation coating → precision slitting—reduces logistics hand-offs and re-packaging damage. The table below benchmarks typical landed cost for 0.35 mm M36 non-oriented coils (FOB Shanghai, May 2024).

Supplier Route	Core Loss @1.5 T, 50 Hz (W/kg)	Lot Size (t)	Price (USD/t)	Lead Time (weeks)
EU Mill via Stockholder	3.9	5	2 680	10–12
Japan Mill via Trader	3.8	10	2 520	9–11
Luoyang Xinzhaohe direct	3.9	3	1 950	4–6

Price includes ASTM A-346 conforming C-5 insulation coating and export-grade VCI paper + steel cage. For annual contracts ≥300 t we lock alloy surcharge at LME-Si price on order date, insulating your BOM from quarterly volatility.

Customisation Without MOQ Penalty

Transformer strip is not a commodity—it is a performance component. Our slitting lines (Burghardt + Herzog, 0.05 mm width tolerance, 6 µm burr) handle 3–1 250 mm widths; anneal furnaces operate under 75 % H₂ / 25 % N₂ to guarantee decarburisation ≤ 0.003 %C, yielding uniform permeability in the critical 0.8–1.3 T region. Need 0.27 mm M36 with 2 µm organic plus chromium-free phosphate coating for VPI compatibility? We routinely run 5-t pilot lots that large mills reject. Die-cutting or CNC lamination stacks? Tolerance ±0.05 mm, inter-lamina burr < 5 µm, varnish compatibility verified by DIN 46429 salt-spray 500 h.

One-Page Technical Datasheet on Request

Send us your core-loss target, stacking factor and coating breakdown voltage; we will return a project-specific datasheet including B-H curve, Franklin test result and RoHS/REACH declaration within 24 h.

Contact:
cathy@transformerstrip.com | WhatsApp: +86-139-3886-9521
Quote today—samples ship in 72 h, production coils in 3–4 weeks.

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