Electrical steel tubing is a term often used interchangeably with electrical steel coil. Though they are both galvanized steel tubes and offer excellent electrical conductivity, they have different uses and characteristics that set them apart. Electrical steel is an alloy designed to produce certain electrical properties: low permeability, low hysteresis (or slip resistance, electrical resistance to the flow of a liquid or gas at the edges), and high electrical strength. Like all steel, electrical steel tubes can be used for both indoor and outdoor applications; however, there are differences in their application.
The increasing demand for various consumer appliances such as air conditioners, refrigerators, and high-power air coolers is the main factor that is boosting the growth of the global electrical steel market. For instance, according to International Energy Agency, in nations such as Japan and U.S., over 90% of homeowners use air conditioning. Moreover, the increasing demand for electric steel in the global automotive industry in order to develop several components is also enhancing the growth of the global electrical steel market. Electric steel is used in powering steering actuators, core material for motors along with steering systems motors. Additionally, the utilization of electric steel also helps in improving the fuel efficiency of vehicles.
Most common to industrial and commercial applications, electrical steels are typically long formed by welding, injection molding, roll forming, or pressing. Although the process of forming them requires some level of skill, it's a relatively straightforward process compared to welding or baking. The most commonly applied form of electrical steel tube is unpolished, which is then rolled onto a die and machined to give it a smooth, rounded appearance. Also available in unrolled and finished forms, they are also sometimes coated with paint to enhance corrosion resistance or provide a glossy or colored finish. Many of the coating options are intended for use outdoors where harsh conditions may affect the coating's ability to withstand damage. However, the increasing importance of nickel-iron alloys that are more advanced and innovative as compared to electric steel is the main factor that is negatively affecting the growth of the global electrical steel market.
Owing to the increasing usage of consumer electric goods in the region, Asia Pacific is experiencing high demand in the global electrical steel market. For instance, according to The Indian Home & Personal Care Industry Association, the approximate penetration rate of the refrigerator market across India is expected to increase around 47.5% by 2026. In 2018, around 13% of households in the nation used washing machines, 33% used refrigerators, and around 77% had a television at home. Moreover, the prevalence of key market players in the region is also aiding the growth of the market. Owing to such factors, there have been several industrial developments in the global electrical steel market. For instance, in July 2019, NLMK Group signed an agreement with LTC Group.