CRGO Electrical Steel Market in Chennai (2020–2025): What Buyers Should Know

mukesh muke
Aug 22
5 min read

• India has faced a persistent CRGO supply gap through 2024–2025, keeping compliance and sourcing efficiency critical. BusunessWorld GTRI

• CRGO used in transformer cores must comply with IS 3024:2015 under the Steel & Steel Products (Quality Control) Order, 2020; BIS marking/licensing (or CoC) is mandatory. InternetArchive

• Chennai remains a strategic trading location: proximity to Chennai Port and Kamarajar (Ennore) Port and the dedicated Sathangadu Iron & Steel Market (203 acres) streamline logistics for imports and domestic distribution. Wikipedia IBEF Chennai Municipal Corporation

• Downstream demand is supported by India’s growing transformer market and new core-processing capacity additions in 2025. GlobeNewswire Transformer Magazine

Why CRGO matters—and where Chennai fits

CRGO (Cold-Rolled Grain-Oriented electrical steel) is engineered so magnetic domains align in the rolling direction, cutting core losses in transformers. India’s transformer build-out and grid modernization have kept CRGO in structural demand. Multiple analyses through late-2024 estimate India required ~400,000 tonnes of CRGO in FY 2024, with only ~50,000 tonnes domestically produced—a shortfall made up by imports. BusinessWorld

Chennai is one of the country’s most efficient places to trade electrical steels thanks to:

• Blue-water access: Chennai Port (INMAA) handles iron & steel among its major cargoes; Kamarajar Port (Ennore) sits just north of the city, serving bulk and break-bulk streams.

• A purpose-built market yard: The Sathangadu Iron & Steel Market (declared a market area by Govt. Order in 1999) spans ~203 acres with connectivity to port and railheads—concentrating many of the region’s steel traders in one zone.

For CRGO buyers and OEMs, that combination reduces lead time from berth to shop-floor and improves access to testing, slitting, and lamination services via local partners.

Compliance: BIS & IS 3024:2015—non-negotiable in 2025

Under India’s Steel & Steel Products (Quality Control) Order, 2020, CRGO sheet and strip must meet IS 3024:2015 and carry the BIS Standard Mark under license or a Certificate of Conformity. Authorities have reinforced QCO coverage and enforcement windows over 2020–2025. Practically, this means:

• Import consignments without BIS compliance (or applicable exemptions) risk clearance delays.

• OEM audits increasingly require documentary proof (license/CoC, mill TC, and traceability to IS 3024 grades).

If you specify by IS 3024 designations (e.g., 23CG110, etc.), you’re aligning to the Indian standard’s grade system for core loss and thickness ranges. Keep your MTCs, BIS license numbers, and batch traceability ready for tenders.

Demand drivers (2024–2025): why availability still feels tight

1. Transformer CAPEX & replacements: India’s power and distribution transformer market is growing; recent reports peg 2025 value at ~$4.5 bn, with CAGR in the mid-single digits to 2031. This pulls steady volumes of CRGO grades for distribution and power transformer cores.

2. New core-processing capacity: In 2025, Toshiba TTDI inaugurated a CRGO core processing centre (12,000 t/yr)—a sign that OEMs are localizing steps like slitting, stacking, and annealing, which supports regional demand in South India too.

3. Import-dependent reality: With domestic CRGO output limited vs. need, buyers must stay sharp on import lead times, documentation, and port logistics. Public import dashboards and trade data sites show CRGO shipments entering India across major ports through 2024–2025.

Import routes & Chennai logistics (buyer notes)

• Ports: CRGO often enters via the west coast (JNPT/Nhava Sheva), but Chennai/Kamarajar are key for South-bound supply. Chennai Port lists iron & steel among major imports; its 2023–24 throughput surpassed 51.6 million tonnes across cargo types.

• Market access: Sathangadu Iron & Steel Market gives traders and OEM buyers quick access to multiple stockists in one ecosystem. (Public listings show numerous steel businesses operating inside the market; always verify CRGO-specific capability and BIS documentation.)

Quality and grades: what to ask your supplier

• Standard: IS 3024:2015 (BIS) equivalent to global GOES conventions; insist on BIS license/CoC particulars on documents.

• Grade & core loss: Specify by IS grade (e.g., 23CG110) and max W/kg at test flux (per IS 3024 tables). Mill TCs should state thickness, coating type, Epstein test results, and lot traceability.

• Processing history: For lamination sheets (mitered, step-lap, V-notch), confirm whether strips were slit locally and whether stress-relief anneal is needed for your build spec (distribution vs. power transformer).

Market realities (2024–2025) to budget for

• Structural shortfall: Analyses in late-2024 highlight a ~350 kt gap between demand and domestic production, which periodically tightens availability and keeps grade-wise pricing sensitive to global cycles.

• Policy & compliance friction: Ongoing QCO expansions and BIS tightening mean non-compliant shipments face more scrutiny—plan for documentation buffers.

• Trade flows: India’s broader steel imports (not CRGO specifically) surged in FY 2025; authorities even weighed safeguards on certain categories. While CRGO is a niche within HS 72, overall customs vigilance can still affect lead times.

Chennai buyer’s checklist (S M STEELS’ perspective)

1. Ask for IS 3024:2015 proof: BIS license/CoC + MTC with grade, loss values, and coating.

2. Verify origin & routing: Confirm port of discharge (Chennai/Ennore vs. JNPT) to estimate inland freight and delivery windows.

3. Plan around demand cycles: Coordinate orders before peak tender seasons for utilities to avoid grade shortages (e.g., 23CG110 in thin gauges).

4. Local processing partners: For laminations (mitered, V-notch, gapping), align with a processor that can meet your stacking factor and burr specs—and provide anneal certification where required. (Capacity expansion news from OEMs signals more local options in 2025.)

About Sathangadu, Chennai—why this market yard helps

The Chennai Metropolitan Development Authority (CMDA) describes the Sathangadu Iron & Steel Market as ~203 acres, strategically close to Chennai Port and railheads. That makes it an ideal aggregation point for import lots, secondary sheets, and scrap movement as well. Public listings show multiple wholesalers operating inside the complex. For buyers, that density means better grade discovery and faster truck turnarounds.

Sources & further reading

• BIS/Standards & QCO: IS 3024:2015 (official text & product manual); BIS product certification & QCO pages; Steel & Steel Products (Quality Control) Order, 2020 (context and updates). InternetArchive Scribd BIS

• Market demand & shortage: BusinessWorld (Dec 2024) on India’s CRGO shortage; GTRI briefing (2024) quantifying FY 2024 requirement vs. domestic output. BusinessWorld GTRI

• Transformer market growth: ResearchAndMarkets/GlobeNewswire (June 2025) and Transformers Magazine summaries; IMARC snapshot (2024). GlobeNewswire Transformer Magazine IMARC Group

• Chennai logistics: Chennai Port (profile & cargo, including iron & steel), Kamarajar Port showcase; CMDA note on Sathangadu market. Wikipedia IBEF Chennai Municipal Corporation

• Trade flow dashboards (indicative): Volza (CRGO import shipments updated 2025). Volza

Final Thoughts

The CRGO electrical steel market in Chennai remains one of the most strategic hubs in India for transformer manufacturers, distributors, and traders. With proximity to major ports, the presence of the Sathangadu Iron & Steel Market, and strong logistics connectivity, Chennai continues to play a vital role in bridging India’s CRGO supply gap. However, compliance with IS 3024:2015 and the Steel & Steel Products (Quality Control) Order is non-negotiable, and buyers must carefully verify BIS certification, mill test certificates, and grade specifications before purchasing.

At S M STEELS, we specialize in helping businesses source high-quality CRGO Prime Coils, Lamination Sheets, Transformer Cores, and CRGO Scraps, all arranged with complete documentation and nationwide delivery support. Whether you are a transformer manufacturer, a dealer, or a consultant, our expertise and round-the-clock availability ensure you get reliable supply at competitive prices.

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