CRGO electrical steel is a critical material in transformer manufacturing and India's expanding power infrastructure. Strengthening domestic manufacturing while ensuring uninterrupted access to certified prime CRGO coils India's power sector is entering a period of significant expansion. Transmission infrastructure is being strengthened, renewable-energy capacity is increasing, electric mobility is accelerating, and the rapid development of data centres and digital infrastructure is creating new electricity demand. At the centre of much of this infrastructure is a highly specialised material that receives comparatively little public attention: Cold Rolled Grain Oriented Electrical Steel, or CRGO. CRGO is the magnetic core material used in power and distribution transformers. Its electrical and magnetic properties directly influence transformer efficiency and no-load losses. Unlike conventional structural or commodity steel, CRGO is a specialised electrical steel manufactured to tightly controlled magnetic, dimensional and surface-performance requirements. This distinction is important when considering India's policy framework for the material. India has taken several important steps to build domestic CRGO manufacturing capability. At the same time, the country continues to depend heavily on imported prime CRGO coils. The policy challenge, therefore, is not a choice between domestic manufacturing and imports. It is how India can build domestic capacity while maintaining reliable access to quality-assured CRGO during the transition period. India remains significantly dependent on imported CRGO Recent estimates cited by the Global Trade Research Initiative (GTRI) put India's annual CRGO consumption at approximately 400,000–450,000 tonnes, while domestic production has been estimated at only 40,000–50,000 tonnes. This means that close to 90% of India's requirement continues to be met through imports. (energy.economictimes.indiatimes.com) This import dependence is not simply a result of a lack of conventional steelmaking capacity. CRGO is a technologically specialised electrical steel requiring specific manufacturing processes and quality control. The Bureau of Indian Standards currently lists IS 3024:2015 for grain-oriented electrical steel sheet and strip, and CRGO is covered under the compulsory certification framework. (bis.gov.in) The quality-control framework serves an important purpose. It helps ensure that material entering the transformer manufacturing chain meets the required Indian standards. The challenge arises when the number of certified and available overseas sources becomes constrained while domestic production is still substantially below national consumption. The BIS factor and the importance of continuity of supply India's CRGO import framework has been shaped by the requirement that the material comply with applicable BIS standards and certification requirements. The industry experienced a significant supply disruption during 2024. An industry record from the Indian Transformer Manufacturers Association (ITMA), documenting an inter-ministerial meeting on CRGO scarcity, stated that renewal of BIS licences for four Chinese mills had been kept on hold, with the mills representing approximately 22% of India's CRGO requirement at that time. The same record also referred to delays involving a Korean supplier. (itma.org.in) The resulting shortage highlighted an important policy lesson: when domestic production is not yet sufficient, administrative interruptions affecting certified overseas supply can have consequences far beyond the steel industry itself. The objective of BIS certification—ensuring quality and reliability—remains essential. The question is whether the certification and renewal mechanism for specialised imported electrical steel can be made sufficiently predictable and responsive to the realities of India's power-sector demand. A faster and more transparent renewal pathway for compliant foreign manufacturers, while retaining all necessary quality checks, could help reduce avoidable supply disruptions. Domestic CRGO manufacturing is expanding There is encouraging progress on the domestic manufacturing side. JSW Steel, through its partnership with JFE Steel, currently has a CRGO facility in Nashik with approximately 50,000 tonnes per annum of capacity. The company has announced plans to expand the Nashik facility to 250,000 tonnes per annum and develop 100,000 tonnes per annum of capacity at Vijayanagar, taking the targeted combined capacity to approximately 350,000 tonnes per annum. JFE has stated that the Vijayanagar facility is targeted for operation by 2027, with the Nashik expansion scheduled in phases between 2028 and 2030. (jswsteel.in) This is a major positive development for India's electrical-steel ecosystem. The Government has also recognised the strategic importance of electrical steel. CRGO is included within the Specialty Steel PLI framework, demonstrating that domestic manufacturing of this specialised material is already being treated as an area worthy of policy support. (ddnews.gov.in) However, the transition period remains important. Until the announced capacity becomes operational at scale, there is a substantial difference between India's current domestic production and total requirement. That gap cannot simply disappear because new capacity has been announced. India's electricity infrastructure is expanding rapidly The requirement for transformers is closely connected to India's broader power-infrastructure programme. According to the Ministry of Power, the National Electricity Plan envisages the addition of approximately 1,91,474 circuit kilometres of transmission lines and 1,274 GVA of transformation capacity between 2022-23 and 2031-32at 220 kV and above. By 2031-32, total transformation capacity at these voltage levels is projected to reach approximately 2,345 GVA. (powermin.gov.in) The Ministry of Power has also acknowledged that transformer and reactor supply depends on key components including CRGO steel, bushings, insulation and copper conductors, and that supply-chain constraints in these components have been observed. The Ministry stated in March 2026 that the transformer industry is undertaking substantial capacity expansion, with approximately 315 GVA of additional manufacturing capacity planned over three years. (powermin.gov.in) This makes the availability of CRGO more than a specialised steel-industry issue. It is ultimately an infrastructure issue. The impact reaches the final transformer price CRGO is one of the major raw materials in transformer manufacturing. The Central Electricity Authority itself describes the core material—CRGO or amorphous steel—as accounting for a major portion of transformer material cost, and notes that shortages and price fluctuations can hamper timely transformer supply. (cea.nic.in) Industry estimates can vary depending on transformer rating, design, efficiency class, copper or aluminium winding, and other specifications. The precise percentage therefore differs from one transformer to another. But the principle is straightforward: When the cost or availability of CRGO changes materially, the effect does not stop at the CRGO supplier. It moves through the transformer manufacturer's cost structure and ultimately influences the price at which the transformer can be supplied. This becomes particularly important when transformers are procured through competitive government and utility tenders. A transformer manufacturer cannot simply absorb a substantial and unexpected increase in a critical raw material indefinitely. At the same time, a utility procurement process is designed around competitive pricing and project budgets. The result can be a difficult balance between: competitive tender pricing; transformer manufacturers' actual input costs; project execution timelines; availability of compliant CRGO; and ultimately the cost of expanding India's power infrastructure. The Ministry of Power has itself recognised the importance of price variation mechanisms in long-duration power-sector contracts, while IEEMA maintains price-variation mechanisms specifically covering CRGO-related inputs. (powermin.gov.in) Therefore, CRGO availability and pricing have a direct relevance to the economics of finished transformers supplied to utilities and government-linked projects. Demand is likely to broaden beyond traditional power projects India's future electricity requirement is not being driven by a single sector. The International Energy Agency expects India's electricity demand to grow at an average 6.4% annually through 2030, adding more than 570 TWh of annual consumption over the next five years. Industry, transport electrification and other expanding electricity uses are expected to contribute significantly to this growth. (iea.org) Electric mobility The Government's PM E-DRIVE programme is accelerating electric mobility. The Ministry of Heavy Industries' dashboard recorded more than 31 lakh EV sales across the scheme's reported categories as of August 2026, while the programme itself has been designed to support the adoption of electric vehicles across multiple segments. (pmedrive.heavyindustries.gov.in) Greater electrification means greater demand for electricity infrastructure, charging infrastructure and associated grid investment. Data centres and digital infrastructure The growth of data centres adds another emerging source of electricity demand. The Ministry of Electronics and Information Technology reported that India's data-centre capacity increased from approximately 375 MW in 2020 to around 1,500 MW in 2025. (pib.gov.in) Wood Mackenzie estimates that India's operational data-centre capacity could rise from 2.2 GW in 2025 to 12 GW by 2030, driven by AI, cloud computing and the digital economy. (woodmac.com) These developments are not themselves CRGO projects. However, they represent additional drivers of electricity demand and grid investment—and therefore contribute to the broader requirement for reliable electrical infrastructure. A useful lesson from India's solar industry A recent development in the solar industry provides an interesting example of how policy transition can be approached constructively. In June 2026, industry associations from Karnataka, Kerala and Tamil Nadu approached the Karnataka High Court regarding the implementation of ALMM List-II for solar cells. Importantly, the issue was not simply opposition to domestic manufacturing. The industry bodies sought greater transition flexibility because of concerns regarding domestic availability, quality, pricing and the ability of existing projects to adapt immediately to the new sourcing requirement. (now.solar) The Government subsequently provided a limited extension until 31 December 2026 for certain net-metering and open-access renewable-energy projects, rather than abandoning the domestic manufacturing objective. (mnre.gov.in) The broader lesson is relevant to CRGO: Domestic manufacturing goals and temporary supply-chain flexibility do not necessarily have to be opposing objectives. A phased approach can allow domestic manufacturing to grow while ensuring that infrastructure projects already dependent on a constrained supply chain are not unnecessarily disrupted. CRGO should be viewed differently from conventional steel categories This is perhaps the most important policy consideration. CRGO is a specialised electrical steel with a direct relationship to the efficiency and performance of transformers. Transformers, in turn, are fundamental to transmission, distribution, renewable-energy integration, industrial electrification and the expansion of India's electricity network. Therefore, CRGO should not be assessed solely through the conventional lens of a general steel commodity. A shortage of construction steel may affect construction costs. A shortage of CRGO can affect the manufacture and delivery of equipment that is required to transmit and distribute electricity itself. That distinction deserves specialised policy attention. A balanced policy approach could support both Make in India and energy security India's long-term objective of developing domestic CRGO manufacturing is important and should continue. At the same time, until domestic capacity is sufficient to meet national requirements, a few targeted measures could help maintain supply continuity without compromising quality standards. 1. Faster BIS renewal for compliant overseas manufacturers Existing compliant foreign manufacturers could have a more predictable and time-bound renewal mechanism, particularly where there is demonstrable domestic supply shortage. This need not mean lowering the BIS standard. It would mean improving administrative continuity while retaining technical scrutiny. 2. Wider access to qualified international sources India could continue expanding the pool of approved foreign manufacturers and grades where they meet Indian technical requirements. A diversified source base reduces dependence on any single country or manufacturer. 3. A transition mechanism until domestic capacity scales up Where domestic production is demonstrably below national requirement, a clearly defined transitional import framework for certified prime CRGO coils could help bridge the gap until announced domestic capacity becomes operational. Such a framework could retain traceability, testing and certification requirements. 4. Consider downstream impact in trade-remedy decisions DGTR initiated an anti-dumping investigation in June 2026 covering CRGO and amorphous metal imports from China, Japan, Korea and Russia. The investigation remains ongoing as of August 2026; no final finding should be assumed at this stage. (dgtr.gov.in) Given the importance of CRGO to transformers, it is valuable for the downstream impact on transformer manufacturers, utilities, grid projects and electricity infrastructure to be carefully considered alongside the interests of domestic electrical-steel manufacturing. 5. A dedicated CRGO policy mechanism Considering its strategic role, CRGO could benefit from a more coordinated mechanism involving the relevant stakeholders across the Ministry of Steel, BIS, Ministry of Power, CEA, DGTR and industry representatives. This would allow changes relating to certification, imports, domestic capacity, trade remedies and power-sector demand to be evaluated together rather than independently. The objective should be resilience, not dependence India's goal should ultimately be a resilient CRGO ecosystem with strong domestic manufacturing capability, technological development and multiple reliable sources of supply. Domestic manufacturing will play an increasingly important role in achieving that objective. But until the domestic capacity gap is closed, access to certified international supply remains an important part of India's energy-security equation. The answer does not have to be a choice between imports and domestic manufacturing. India can simultaneously encourage domestic CRGO production, maintain stringent quality standards, diversify international sourcing and create a predictable transition framework for certified prime CRGO coils. That would support the interests of domestic electrical-steel manufacturing while also protecting the transformer industry and the much larger infrastructure programme that depends on it. Conclusion India is building an electricity system for a significantly more electrified economy. Renewable-energy integration, transmission expansion, electric mobility, industrial growth and the rise of data centres are all increasing the importance of reliable power infrastructure. Transformers sit at the heart of that infrastructure—and CRGO sits at the heart of the transformer. With annual CRGO requirements estimated at 400,000–450,000 tonnes against current domestic production of approximately 40,000–50,000 tonnes, India remains in a transition period. At the same time, major domestic capacity expansion is underway, including the targeted 350,000-tonne-per-year JSW-JFE programme. (energy.economictimes.indiatimes.com) This creates an important policy window. CRGO deserves focused attention as a strategic electrical-steel category—not merely as another steel product. The objective should be clear: build domestic capability, maintain quality, ensure supply continuity and keep India's transformer and power-infrastructure expansion economically viable. A carefully calibrated policy approach can help achieve all four.

Cold Rolled Grain Oriented (CRGO) electrical steel coils used for manufacturing energy-efficient transformer cores. The Indian CRGO market has transformed from a relationship-driven trading business into a specialized ecosystem shaped by technical expertise, global supply chains, import dynamics, policy changes, and procurement intelligence. For decades, many people viewed the CRGO business as a straightforward trading activity—buy material, sell material, and negotiate the best possible price. That perception may have reflected an earlier era. Today, it no longer reflects reality. The Indian market for Cold Rolled Grain Oriented (CRGO) electrical steel has become one of the country's most specialized industrial supply chains. It now sits at the intersection of metallurgy, transformer manufacturing, international trade, logistics, quality assurance, procurement strategy, and government regulation. Success in this industry is no longer determined solely by who has inventory. It increasingly depends on who understands the market. The Market Has Changed India's transformer industry has grown rapidly over the past decade, driven by expanding transmission networks, renewable energy integration, industrial growth, urbanization, and rural electrification. As transformer technology advances, expectations from CRGO materials have also increased. Buyers today evaluate far more than thickness or price. Questions now include: What is the core loss performance? Which origin is most suitable? Does the material comply with current requirements? What is the coating condition? What are the lead times? Is there sufficient stock continuity? How will global supply affect future availability? These are no longer niche questions. They are becoming standard procurement considerations. Price Is Only One Part of the Decision Many purchasing decisions still begin with price. However, experienced buyers understand that the lowest purchase price does not always produce the lowest total manufacturing cost. A procurement decision today often involves balancing: Technical performance Material availability Inventory planning Delivery schedules Supplier reliability Long-term production requirements In many cases, avoiding production delays or securing the right specification at the right time creates greater value than achieving a marginally lower purchase price. Global Markets Now Shape Local Decisions Unlike many conventional steel products, India's CRGO supply remains closely connected to international markets. Import availability, freight movements, exchange rates, global mill production, trade regulations, and shipping timelines all influence domestic supply conditions. A procurement manager in India is increasingly affected by events occurring thousands of kilometres away. This global interconnectedness makes market awareness an important part of purchasing decisions. Technical Knowledge Has Become a Competitive Advantage Modern CRGO procurement requires more than commercial negotiation. Understanding topics such as: Grade selection Core loss values Thickness variations Material origins Coating characteristics Prime and secondary material applications Testing parameters helps businesses make better long-term decisions. Technical knowledge reduces uncertainty. Better decisions reduce operational risk. Procurement Has Become Strategic Today's procurement teams are expected to do much more than place purchase orders. They forecast demand. Evaluate supply risks. Plan inventory. Monitor market movements. Compare technical specifications. Build resilient supplier networks. CRGO has become part of a broader procurement strategy rather than a simple purchase transaction. The Businesses That Will Lead Tomorrow As India's power infrastructure continues to expand, demand for efficient transformers will continue to grow. That means the CRGO ecosystem will become even more sophisticated. Manufacturers, suppliers, traders, and procurement professionals who continuously improve their understanding of the market will be better prepared for future challenges. Knowledge is no longer an advantage reserved for technical teams. It is becoming a business necessity. Looking Ahead The Indian CRGO market is no longer defined simply by buying and selling electrical steel. It is defined by informed decision-making. Understanding technical specifications. Interpreting global market developments. Managing supply uncertainty. Planning procurement intelligently. Businesses that continue to view CRGO through the lens of a traditional trading market may find themselves reacting to change. Businesses that invest in understanding the industry will be better positioned to anticipate it. As India's transformer sector continues to evolve, one thing is becoming increasingly clear: The future of CRGO belongs not only to those who supply material—but to those who understand it. At S M Steels, we believe sharing reliable market knowledge helps strengthen the entire CRGO ecosystem. Through our blogs and industry updates, we aim to contribute practical insights that support manufacturers, procurement teams, and professionals working with transformer core materials across India.

India is one of the world's significant re-exporters of CRGO electrical steel, and for buyers outside India, sourcing directly from an Indian supplier at Chennai Port offers competitive pricing, reliable grade availability, and a shorter freight timeline to key markets including the Middle East, South Asia, and Southeast Asia. This article explains what's available for export from India, which countries are actively importing, what the documentation and shipping process looks like, and how S M Steels operates as a Chennai-based export-ready CRGO supplier. India's Position in the Global CRGO Trade India is one of the world's largest consumers of CRGO steel, requiring approximately 400,000 metric tonnes annually, with domestic production of only 50,000 metric tonnes, meaning the country imports heavily from China, Japan, Russia, and South Korea. After accounting for exports of 11,400 metric tonnes, India's available domestic supply stood at 277,800 metric tonnes in FY2024 — still leaving a 30.6% structural shortfall. SeairEximData That export figure — 11,400 MT — represents real, documented outbound movement of CRGO from India to international buyers. And it's growing. India is the world's leading exporter of CRGO core, with 4,138 shipments recorded globally, ahead of Russia with 231 shipments and China with 179 shipments. Indian Trade Portal Which Countries Import CRGO from India? India exports CRGO core to over 66 countries globally. The top three destination markets are Oman, Saudi Arabia, and Bangladesh, which together account for 42% of all CRGO core exports from India. Oman leads with a 19% share, followed by Saudi Arabia at 13%, and Bangladesh at 10%. Additional active markets include Iran, Indonesia, Nepal, the United States, Malaysia, and the Netherlands. Indian Trade Portal For CRGO sheets and laminations specifically, India ranks as the world's third-largest exporter of CRGO sheets under HSN 7226, with Bangladesh and Kuwait among the primary recipient markets. Seair The demand pattern is clear: transformer-manufacturing hubs across the Middle East and South Asia are actively sourcing CRGO material from Indian suppliers. The reasons are straightforward — competitive pricing, accessible freight via Chennai and Ennore Ports, and proximity compared to sourcing directly from mills in Japan, South Korea, or China. What S M Steels Exports from Chennai S M Steels operates from Chennai, Tamil Nadu, with export access through Chennai Port and Ennore Port — two of India's primary gateways for steel shipments to the Middle East, Southeast Asia, and South Asia. Our export-ready product range: → CRGO Oily Jumbo Sheets | 0.23mm (M3) / 0.27mm (M4) / 0.30mm (M5) | Mixed and single-grade lots → CRGO Secondary Oily Sheets | Standard lengths 600–1000mm and above | Bulk lot availability → CRGO Prime Coils | Full-width and slit coils | 0.23mm / 0.27mm / 0.30mm → CRGO Lamination Core Sheets | Cut to size | Grade-specific → CRGO Scrap and Off-cut Materials | Sorted assorted lots for recycling applications Minimum order quantity for export: 25–30 Metric Tons per consignment. Incoterms available: EXW · FOB · CIF Payment terms: 100% Advance (preferred for new buyers) or 100% LC at Sight for established export relationships. How We Handle International Orders: No Trust Issues, No Surprises We understand that international buyers sourcing from a new supplier carry real risk, especially when the material is CRGO, where grade, coating condition, and physical quality directly affect your transformer production. S M Steels eliminates that uncertainty through a transparent pre-shipment process that has made our buyers comfortable from the first order: → Video call inspection before dispatch — you see the exact lot, the sheet condition, coating, dimensions, grade markings, and packaging before we load → Loading supervision via video call — our team walks you through the loading process in real time, so you know what's going in the container → Photo and video documentation of every consignment — grade certificates, mill markings, and packing photos shared before final payment confirmation → No surprises at destination — what you approve on the video call is what arrives at your port This is our standard process — not a special arrangement. Every buyer we work with, domestic or international, gets full visibility before dispatch. Export Documentation S M Steels Provides For international buyers, we coordinate the standard export documentation package: → Commercial Invoice (in USD, exchange rate confirmed at order) → Packing List (weight, dimensions, number of coils/sheets per bundle) → Bill of Lading (FOB Chennai Port / Ennore Port) → Certificate of Origin (where required by destination country) → Mill test certificates / grade documentation where available → E-way bill and GST documentation for domestic logistics All customs and import duties at the destination country are the buyer's responsibility. We coordinate on our end through to port dispatch. HSN Codes for CRGO Export from India For buyers and customs teams, the primary HSN codes applicable to CRGO material exported from India: → HSN 72251100 — Flat-rolled products of other alloy steel, width 600mm or more, grain-oriented silicon-electrical steel (prime coils, jumbo sheets) → HSN 72261100 — Flat-rolled products of other alloy steel, width less than 600mm, grain-oriented silicon-electrical steel (slit coils, narrow strips) → HSN 85049010 — Transformer laminations / cut core made of silicon electrical steel CRGO/CRNGO grade (lamination sheets, cut cores) Pricing Structure for Export CRGO pricing is volatile and exchange-rate dependent. Our export prices are quoted in USD, calculated at the confirmed exchange rate on the date of order. Reference indicative pricing (subject to change): → 0.23mm M3 Prime Coils: ~$2.68/kg | 0.23mm Jumbo Sheets: ~$1.85/kg → 0.27mm M4 Prime Coils: ~$1.90/kg | 0.27mm Jumbo Sheets: ~$1.37/kg → 0.30mm M5 Jumbo Sheets: ~$1.07/kg | 0.30mm M5 Grade Sheets: ~$1.01/kg → 0.35mm M6 Jumbo Sheets: ~$0.95/kg All prices confirmed via WhatsApp before order placement. No binding commitment without direct communication. Who Should Contact Us S M Steels is a B2B supplier. Our international buyers are typically: → Transformer manufacturers in the Middle East, Bangladesh, Nepal, Sri Lanka, Indonesia, and Malaysia looking for a reliable Indian CRGO source → Core cutting units that process CRGO into laminations for transformer assembly → Trading companies and distributors sourcing secondary-grade CRGO for cost-sensitive applications → Industrial recycling operations looking for off-cut and scrap CRGO lots We work with buyers who understand CRGO, take time to inspect material before confirming, and are looking for a long-term supplier relationship — not a one-time spot deal. Contact S M Steels for Export Enquiries WhatsApp / Phone: +91 8939461720 Email: smsteelschennai@gmail.com Website: www.smsteels.org LinkedIn: linkedin.com/in/smsteels IndiaMart: IndiaMART.in/893z6AJ5 WhatsApp is our primary communication channel for all trade queries, pricing, and order confirmation. S M Steels — Trusted CRGO Partner from India to the World

A DGTR anti-dumping investigation has been initiated against CRGO and Amorphous Metal imports from China, Japan, South Korea, and Russia — at the exact moment India needs more of this material than at any point in its history. The Timing Could Not Be More Consequential On 22 June 2026, India's Directorate General of Trade Remedies (DGTR) issued F. No. 6/17/2026-DGTR: an initiation notification for an anti-dumping investigation into imports of Cold Rolled Grain Oriented Electrical Steel (CRGO) and Amorphous Metal (AM) originating in or exported from China PR, Japan, Korea RP, and Russia. Case No. AD(OI) 15/2026 was registered on the SETU portal under Case Id AD/OI/016/2026. The application was filed by JSW JFE Electrical Steel Private Limited India's only domestically eligible CRGO producer which alleged that dumped imports from these four countries are causing material injury to domestic industry. The DGTR, upon prima facie review, found sufficient evidence of dumping and injury to initiate the investigation. A Period of Investigation (POI) of 1 April 2025 to 31 March 2026 has been defined, with an injury investigation period extending back to 1 April 2022. This is not yet a duty. It is an initiation notification the first formal step in a process that can take six to twelve months before any provisional or final anti-dumping duty is imposed. The investigation is live, not concluded. But the market does not wait for final findings. The announcement alone is already reshaping procurement behaviour, supplier conversations, and price expectations across India's transformer supply chain. The critical question is not whether India has the right to protect domestic industry. It does. The more important question is this: Can India's CRGO ecosystem as it stands today and as it is projected to stand over the next five years support the scale of demand that the country's power sector, renewable energy infrastructure, AI data centres, and industrial expansion will require? The data demands an honest answer. What the DGTR Notification Actually Says India's anti-dumping framework is governed by the Customs Tariff Act, 1975, and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles for Determination of Injury) Rules, 1995. The initiation notification is a procedural step that triggers a formal investigation. It does not impose duty. Key factual details from the notification are as follows. The applicant is JSW JFE Electrical Steel Nashik Private Limited. The subject countries are China PR, Japan, Korea RP, and Russia. The European Union was initially proposed but excluded after the DGTR found a negative prima facie injury margin specific to EU imports. Products under investigation cover CRGO (silicon content between 0.6% and 6%) and Amorphous Metal (AM) a non-crystalline alloy used as a direct commercial substitute for CRGO transformer cores classified under tariff items 7225 1100, 7226 1100, 7226 9930, and related HS codes. Both materials are used for manufacturing power and distribution transformer cores. The POI runs from 1 April 2025 to 31 March 2026. The DGTR confirmed that NLMK India Coating Pvt. Ltd. the only other producer of CRGO in India is not eligible to be treated as part of the domestic industry for this investigation. NLMK India is related to Russian producers and is also an importer of the subject goods, disqualifying it under Rule 2(b) of the AD Rules. This means JSW JFE Electrical Steel Nashik Private Limited is the sole eligible domestic industry for the purpose of this investigation. On normal value, China is treated as a non-market economy. For China, the applicant could not obtain reliable third-country market data and therefore constructed normal value based on India's cost of production plus reasonable profit. For Japan, Korea, and Russia, the applicant similarly lacked reliable public comparable price data and applied the same cost-of-production construction methodology. The applicant has prima facie demonstrated that the dumping margin is above the de minimis threshold across all four subject countries. The applicant has also requested retrospective imposition of anti-dumping duties for up to 90 days prior to any provisional duty, citing a history of dumping, importer awareness of dumping practices, and a steep decline in domestic industry performance during the POI. The DGTR has not yet issued provisional or final findings. Any interested party exporters, importers, foreign governments, or users of the product has 37 days from the date on which the non-confidential version of the application is circulated to file questionnaire responses through the SETU portal (Case ID: AD/OI/016/2026). Why CRGO Is Not an Ordinary Steel Product CRGO is not a commodity. It is a precision-engineered material that requires secondary recrystallization furnaces, ultra-precise cold rolling equipment, and coating technology that only a small number of manufacturers worldwide have mastered. Its defining physical property grain orientation allows it to conduct magnetic flux with exceptionally low energy loss, which is why transformer cores made from CRGO are significantly more efficient than those made from ordinary electrical steel. Every power transformer in India's grid contains a CRGO or AM core. Every distribution transformer that steps down voltage from the transmission line to your industrial facility or residential colony uses this material. Every substation upgrading from 220 kV to 400 kV or 765 kV that India is building to evacuate solar and wind power from Rajasthan or Tamil Nadu requires transformers with CRGO or AM cores. There is no substitute for this material in high-efficiency transformer manufacturing. The Bureau of Energy Efficiency's January 2025 mandate requiring an upgrade in star-label ratings for distribution transformers has intensified this reality further. Transformer manufacturers that want BEE star-rated products must move toward higher-grade CRGO specifically HiB (High Permeability) grades because the energy loss targets cannot be met with conventional M-grade CRGO. This has created a dual demand problem: total volume is rising, and the grade specification is tightening simultaneously. The Supply Arithmetic India Cannot Escape The numbers are not comfortable, and they have been consistent across every credible source for the past two years. India's annual CRGO demand in FY 2023–24 stood at approximately 400,000 metric tonnes. Domestic production exclusively from the JSW JFE Electrical Steel Nashik facility contributed approximately 50,000 metric tonnes, representing 10 to 12 percent of total demand. India imported 239,200 metric tonnes from China, Japan, Russia, and South Korea. After accounting for 11,400 metric tonnes of exports, approximately 277,800 metric tonnes were available for domestic use leaving a structural shortfall of 122,200 metric tonnes, or 30.6 percent of total demand. This figure was documented and verified by the Global Trade Research Initiative (GTRI) in their December 2024 report, covered by Business Standard, BW Businessworld, KNN India, and Outlook Business. Metric FY 2023–24 Source Total CRGO Demand (India) ~400,000 MT GTRI / Business Standard, Oct 2024 Domestic Production ~50,000 MT JSW JFE Nashik / Industry Reports Total Imports 239,200 MT GTRI / KNN India Exports from India 11,400 MT GTRI Net Domestic Availability 277,800 MT GTRI Calculation Structural Shortfall 122,200 MT (30.6%) GTRI / BW Businessworld Import Dependency Ratio ~88–90% Fastmarkets / Industry Analysis Fastmarkets, in its October 2025 launch of the electrical steel CFR India price assessment (MB-STE-0941), confirmed that India imports close to 400,000 tonnes annually against domestic production of approximately 40,000 to 50,000 tonnes describing the supply gap as representing a 90.9% import dependency ratio that fundamentally shapes market pricing dynamics, making Indian buyers price-takers in the global CRGO market. India's CRGO demand is projected to grow at 10 to 12 percent annually through 2030, driven by the expanding power sector, the renewable energy integration target of 500 GW, the BEE efficiency mandate, industrial expansion, data centre infrastructure, and EV charging networks. At 10 percent annual growth, India's CRGO demand would reach approximately 640,000 to 650,000 metric tonnes per year by FY 2029–30. At 12 percent annual growth, the figure approaches 700,000 metric tonnes. India today cannot meet its CRGO demand without imports. And at the current trajectory of domestic capacity expansion, it will not be able to meet its CRGO demand without imports for at least the next three to four years even with JSW JFE's announced expansion programme. JSW JFE: The Expansion That Changes Everything Eventually JSW JFE Electrical Steel is undertaking the single most significant investment in India's CRGO manufacturing history. The facts are well-documented and publicly confirmed. The Nashik facility acquired by JSW JFE from thyssenkrupp Electrical Steel India Private Limited in January 2025 for approximately ₹4,159 crore currently operates at 50,000 TPA capacity. The board has approved an expansion to 250,000 TPA. John Cockerill India Limited was awarded the contract in September 2025 for the engineering, design, manufacture, and supply of high-temperature tunnel furnaces for the Nashik facility, with commissioning targeted for the first quarter of 2027. The full expansion of Nashik from 50,000 TPA to 250,000 TPA will begin in FY 2028 and is expected to complete in phases through FY 2030. Separately, JSW JFE Electrical Steel Private Limited's Vijayanagar, Karnataka facility a greenfield plant established in February 2024 has had its planned capacity doubled from an initial 62,000 TPA to 100,000 TPA, with full production expected to commence in 2027. Total investment across both sites: approximately ₹6,500 crore (JPY 120 billion), with cumulative JSW JFE investment in India reaching approximately JPY 290 billion roughly ₹17,000 crore or USD 2 billion. Facility Current Capacity Target Capacity Expected Timeline JSW JFE Nashik (Maharashtra) 50,000 TPA 250,000 TPA Expansion: FY2028–FY2030 (phased) JSW JFE Vijayanagar (Karnataka) Under construction 100,000 TPA Full production: 2027 Combined Capacity (Post-Expansion) 50,000 TPA 350,000 TPA Full realisation: FY2030 At 350,000 TPA post-expansion, JSW JFE's combined capacity would cover approximately 50 to 55 percent of India's current annual demand of 400,000 metric tonnes but by the time that capacity is fully realised in FY 2030, India's annual demand will likely have grown to 600,000 to 700,000 metric tonnes, depending on the growth rate. The supply gap will still exist; it will simply be narrower. This is the core structural reality: JSW JFE's expansion is essential, ambitious, and welcome. It is also not sufficient to make India self-sufficient in CRGO, and it will not be complete for several years. The period 2026 to 2030 is precisely the most critical window when demand is accelerating fastest and it is the window during which India remains most import-dependent. India's Power Demand: The Scale of What Is Coming The CRGO anti-dumping investigation is unfolding against a backdrop of extraordinary power sector expansion one that has few global parallels in scale or speed. India's peak electricity demand reached 242.49 GW in FY 2025–26, confirmed by the Ministry of Power in its Year End Review of December 2025. The IEA's Electricity 2026 report projects Indian electricity consumption to grow at an average of 6.4 percent per year through 2030, adding 570 terawatt-hours (TWh) to annual consumption over the five-year period. The Central Electricity Authority projects peak demand to exceed 459 GW by 2035–36. India's installed capacity needs to reach and likely exceed 1,000 GW by 2034–35, as confirmed by CEA Chairman Ghanshyam Prasad in August 2025. The transmission infrastructure required to support this demand is similarly extraordinary. India must construct approximately 335 GW of transmission network to connect 280 GW of variable renewable energy to the Inter-State Transmission System (ISTS) by 2030. As of the Ministry of Power's December 2025 review, 48 GW of this had been completed, 172 GW was under construction, and 18.5 GW was under bidding. The Ministry approved 25.8 GW of RE-linked interstate transmission projects worth ₹38,849 crore in 2025 alone. Every kilometre of this transmission expansion every new substation, every step-up and step-down transformer, every new 400 kV and 765 kV yard requires CRGO or AM steel. India added 113,013 MVA of substation transformation capacity at 220 kV and above in FY 2025–26, achieving 90 percent of its 126,007 MVA target. The India transformer market, valued at approximately USD 2.6 billion in 2025, is projected to reach USD 5.6 billion by 2034 a CAGR of 7.76 percent. India's government has committed ₹25.7 lakh crore (USD 300 billion) to power and transmission infrastructure through 2030. Every rupee of that commitment requires transformers. Every transformer requires CRGO or AM. The math is not subtle. Data Centres: The Demand Driver Nobody Planned For When India's transformer industry drew up its demand forecasts five years ago, data centres were not among the primary growth drivers. They are now, and the numbers are staggering. India's operational data centre capacity reached approximately 1,520 MW IT by the end of 2025, representing a 34 percent increase over the previous year, according to Savills India data. Mumbai accounted for 34 percent of operational supply, Delhi-NCR 20 percent, and Chennai 19 percent. The sector absorbed approximately 430 MW of new capacity in 2025 alone. India's installed data centre capacity is projected to reach 1.7 to 2.0 GW by the end of 2026, backed by nearly USD 30 billion in investments (Vestian, April 2026). The pipeline beyond 2026 is larger still. Over USD 60 to 70 billion in data centre projects have been announced for the next five years, led by hyperscale platforms and joint ventures. Mordor Intelligence projects India's total data centre capacity to climb from 5,450 MW in 2026 to 15,210 MW by 2031 a CAGR of 22.79 percent. AI-driven infrastructure accounted for 78 percent of data centre leasing activity in 2025, compared with just 23 percent a year earlier. Google and Adani finalised a USD 15 billion alliance in October 2025 for cloud regions in Bengaluru, Delhi-NCR, and Mumbai. NTT DATA and Neysa Networks signed an MoU with the Telangana government in April 2025 to invest USD 1.18 billion in a 400 MW AI-driven data centre cluster in Hyderabad. Power demand from AI data centres in India could hit 50 TWh a year by 2030. The Ministry of Power has projected that power demand from data centres will reach approximately 13.56 GW by FY 2031–32. Karnataka's Department of Energy has already announced plans to upgrade transmission lines from 400 kV to 765 kV specifically to support data centre power loads. Every large-scale hyperscale facility a 100 MW campus is effectively its own mini-grid infrastructure project. It requires transformers. Those transformers require CRGO. India is building a digital economy that will rank among the world's largest within a decade. That digital economy runs on power. That power flows through transformers. Those transformers need CRGO that India cannot yet produce in sufficient quantity and the government has now initiated an investigation that could make importing it more expensive. Renewable Energy: 500 GW Ambition, One Material Constraint India's target of 500 GW of non-fossil fuel capacity by 2030 is one of the most ambitious energy commitments made by any nation in history. As of December 2025, India's total renewable energy capacity including large hydroelectric had reached 258.3 GW, with solar contributing 135.81 GW and wind 54.51 GW. Between April and December 2025, India added a record 37.91 GW of renewable capacity, surpassing fossil fuels in total clean energy capacity for the first time. The IEA projects India will add approximately 300 GW of new renewable capacity between 2025 and 2030 roughly 60 GW per year on average. The CEA's adequacy plan projects solar to grow from approximately 141 GW in 2025–26 to 509 GW by 2035–36, wind from 55 GW to 155 GW. As of March 2026, approximately 157.80 GW of renewable energy capacity was under construction. This renewable expansion drives transformer demand across three separate stages: generation-side transformers at solar and wind farms that step up voltage for grid injection; transmission-side power transformers at evacuation substations; and distribution-side transformers at the load end. Power Grid Corporation of India placed an order in June 2025 with Hitachi Energy India for 30 units of 765 kV 500 MVA single-phase transformers. GE Vernova was selected in May 2025 to supply over 70 extra-high-voltage transformers and shunt reactors for Power Grid's major transmission projects. Every one of these units contains CRGO or AM at its core. The Anti-Dumping Investigation Through an Honest Lens Let us be direct about what this investigation represents and what it does not. JSW JFE Electrical Steel Nashik Private Limited is the sole eligible applicant in this investigation and it is simultaneously the company that filed the anti-dumping complaint, the company receiving the largest foreign investment in India's CRGO manufacturing history, and the company whose capacity currently meets 10 to 12 percent of India's CRGO demand. Its Nashik expansion will not reach full capacity until FY 2030 at the earliest. Its Vijayanagar facility will begin full production in 2027. Between now and then, India remains almost entirely import-dependent for CRGO. The anti-dumping rules entitle JSW JFE to file this application. The DGTR was correct to initiate the investigation upon finding prima facie evidence of dumping and injury. These are legally grounded steps. None of this is in dispute. What is in dispute is the question of market consequence. Anti-dumping duties, if imposed, function as a price floor on imports. In a market where domestic supply covers 10 to 12 percent of demand and the remaining 88 to 90 percent must be imported, a price floor on imports is not industrial protection in any meaningful sense it is a cost increase imposed on transformer manufacturers, utilities, renewable energy developers, EPC contractors, and ultimately the industrial and residential consumers who pay electricity tariffs. There is no domestic alternative they can switch to. There is no volume of domestic CRGO that makes the imported volumes optional. The import is structurally required. To put it plainly: India is attempting to protect a domestic industry that cannot supply its own market, by making the imports that supply its market more expensive, at the precise moment when demand is growing at its fastest rate in history. This is not a critique of JSW JFE, which is making a legitimate and essential investment. It is a question about timing, sequencing, and the burden that the investigation itself even before any duty is imposed places on an already-strained supply chain. The GTRI's December 2024 report specifically recommended that India must prioritise local production, that the BIS process needs urgent review by independent auditors, and that the approved list of CRGO grades and suppliers must be expanded to support smaller manufacturers and MSMEs not restricted further. The report did not recommend restricting imports. It recommended closing the supply gap from the domestic side, not the import side. Market Impact: Who Bears the Cost? The transformer manufacturing industry in India is highly sensitive to input material costs. CRGO and copper together account for up to 70 percent of a transformer's production cost. Annual price swings of 25 to 30 percent on global exchanges for these materials have already pressured margins significantly in recent cycles. Anti-dumping duties, if imposed, would represent an additional and durable cost increase on top of existing price volatility. Transformer Manufacturers Large transformer manufacturers ABB India, Hitachi Energy India, BHEL, Transformers and Rectifiers India, Toshiba TTDI, Indo Tech Transformers procure CRGO in volume and have greater capacity to absorb cost increases or renegotiate procurement contracts. Smaller and mid-size manufacturers do not. Any anti-dumping duty will compress their margins further or force price increases to utilities and EPC customers, who may in turn delay procurement. Utilities and EPC Contractors Public utilities DISCOMs, transmission utilities, Power Grid Corporation of India procure transformers through tendering processes. Tender prices are negotiated in advance. If anti-dumping duties push transformer input costs up, either the tender prices rise at the next cycle or manufacturers absorb the cost and reduce investment. Neither outcome is costless for the power sector's expansion timeline. SMEs and MSMEs The GTRI report specifically identified small and medium enterprises as the most vulnerable segment. MSMEs in India's transformer component supply chain typically purchase CRGO in smaller quantities at spot or short-term rates, with limited ability to forward-hedge. For this segment, even the uncertainty created by an active anti-dumping investigation before any duty is imposed has been sufficient to trigger procurement uncertainty, lead-time extensions, and spot-price premium anxiety. Importers, Traders, and Distributors The trader and distributor segment faces the most immediate uncertainty. Importers with shipments in transit or goods contracted for delivery face the possibility of retrospective duty a specific request made by the applicant for up to 90 days retroactive to provisional duty. Any importer, trader, or distributor operating in this market must account for this risk from this week forward. Three Scenarios: What Could Happen Next Scenario 1 Investigation Concludes Without Duty The DGTR investigation finds insufficient final injury or causal link, or finds that dumping margins are below actionable thresholds. No anti-dumping duty is imposed. The investigation resolves without market disruption beyond the period of uncertainty. This is possible, given that the injury period also covers a time when BIS licence disruptions caused artificial supply tightness a supply-side problem that can be distinguished from dumping injury. Scenario 2 Provisional Duty Within 6 Months The investigation progresses and the DGTR issues a recommendation for provisional anti-dumping duty within six months of initiation. Duties are imposed on a product-category and country-specific basis. The market experiences immediate import cost increases, pricing volatility, and procurement disruption. The duty period is typically five years from final imposition. This scenario creates a high-cost operating environment for the transformer industry during the exact years when India's power sector is growing fastest. Scenario 3 Investigation Triggers Strategic Realignment A more constructive outcome: the investigation process itself creates conditions for a strategic government intervention an accelerated domestic capacity expansion roadmap, a PLI enhancement for CRGO manufacturing, or a parallel policy framework that pairs the anti-dumping investigation with a supply development commitment. This would acknowledge the domestic industry's legitimate injury claims while also protecting the transformer industry's competitiveness. This is the scenario that would serve India's long-term interests most effectively. The right question for Indian policymakers is not simply whether imports were dumped that is the DGTR's question to answer. The right question is: How does India build a secure CRGO supply ecosystem that supports both domestic manufacturing and transformer industry growth simultaneously? Those two objectives are not inherently in conflict but the current investigation creates a real risk that short-term trade protection undermines long-term energy infrastructure development. What Industry Participants Should Do Now Transformer manufacturers, EPC contractors, utilities, importers, and traders should all be taking specific actions in the coming weeks, regardless of where the investigation leads. Every importer, distributor, and buyer of CRGO or AM from China, Japan, South Korea, or Russia should review their open contracts, contracted volumes, and consignment positions. Retrospective duty exposure on 90 days prior to any provisional duty is a live risk. Interested parties may register on the SETU portal under Case ID AD/OI/016/2026 and have 37 days from notification circulation to file responses. Procurement strategies should be reviewed now. Buyers with existing quarterly supply agreements from subject countries should understand their cost exposure under different duty scenarios before those scenarios materialise. Forward contracts and supply agreements that do not account for potential duty imposition carry significant financial risk. Supplier diversification is a medium-term priority that has become an immediate consideration. While Europe was excluded from this investigation, European CRGO volumes are limited and typically priced at a premium. Indian buyers should be actively mapping supply relationships beyond the four subject countries including emerging sources in Taiwan and the domestic supply ramp-up timelines from JSW JFE. Transformer manufacturers should document the impact of CRGO cost changes on their tendering positions and actively communicate with utility customers about potential price revision mechanisms if duties are imposed. Frequently Asked Questions Is this an anti-dumping duty? No. This is an initiation of an anti-dumping investigation. The DGTR has found prima facie evidence to investigate it has not yet imposed any duty. The investigation is expected to run for up to twelve months before final findings are issued. Which countries are under investigation? China PR, Japan, Korea RP (South Korea), and Russia. The European Union was proposed but excluded at initiation after a negative prima facie injury margin was observed for EU imports. Who filed the complaint? JSW JFE Electrical Steel Nashik Private Limited India's only eligible domestic CRGO producer for the purposes of this investigation. NLMK India Coating Pvt. Ltd. was found ineligible due to its relationship with Russian producers and importers. What products are covered? Cold Rolled Grain Oriented Electrical Steel (CRGO) and Amorphous Metal (AM) used for electrical transformer cores, measured in metric tonnes or kilograms. Amorphous Metal used for non-transformer purposes and Magnesium Oxide (MgO) coated cold-rolled steel coils for CRGO substrate are excluded. Could duties be applied retroactively? The applicant has requested retrospective anti-dumping duty for up to 90 days prior to any provisional duty. The DGTR will consider this request. This means shipments currently in transit could theoretically be subject to retrospective duty if the investigation progresses to a provisional duty recommendation. Can India meet its CRGO demand without imports from these four countries? No not now, not over the next two to three years. India's domestic production covers 10 to 12 percent of demand. The four subject countries China, Japan, South Korea, and Russia are India's primary CRGO import sources. There is no combination of alternative suppliers that can substitute these volumes at equivalent quality and price within the investigation or duty period. How will this affect transformer prices in India? If anti-dumping duties are imposed, CRGO input costs for transformer manufacturers will increase. Since CRGO and copper together constitute up to 70 percent of transformer production costs, any material CRGO price increase will flow through to transformer prices in subsequent procurement cycles. The degree of impact will depend on the duty rate, the specific countries affected, and whether provisional measures are applied. How does this affect the BEE star-label mandate? The BEE star-label upgrade for distribution transformers, effective January 2025, requires higher-grade CRGO specifically HiB grades to meet lower energy loss targets. If imports become more expensive or more uncertain, manufacturers may face increased difficulty sourcing the specific high-grade CRGO needed for BEE-compliant products. When will JSW JFE's Vijayanagar plant be ready? Full production at the Vijayanagar, Karnataka facility is expected by 2027, at 100,000 TPA capacity. The Nashik expansion from 50,000 TPA to 250,000 TPA begins in FY 2028 and completes in phases through FY 2030. Combined capacity at full build-out: 350,000 TPA. What should a CRGO buyer or importer do right now? Register as an interested party on the SETU portal (https://setu.dgtr.gov.in) under Case ID AD/OI/016/2026. File questionnaire responses within 37 days of notification. Review open contracts for retrospective duty exposure. Map alternative supply sources. Consult legal counsel on compliance obligations under the investigation timeline. Conclusion: A Critical Question India Must Answer India's ambition to build a robust domestic electrical steel manufacturing ecosystem is strategically sound and long overdue. CRGO has been a persistent supply vulnerability for India for five decades. JSW JFE's investment the largest commitment to CRGO manufacturing in India's history represents genuine and welcome progress toward addressing that vulnerability. The DGTR investigation follows established legal procedures and the applicant's claims of dumping injury are within the framework of legitimate trade defence. The process is legally sound. But sound process does not automatically produce sound outcomes. India is attempting to defend a domestic industry that currently supplies 10 to 12 percent of its own market by increasing the cost of the 88 to 90 percent that must come from abroad during a period when electricity demand is growing at 6.4 percent annually, when renewable energy addition targets require thousands of new transformers per year, when data centre power demand is projected to exceed 13 GW by FY 2031–32, and when the domestic expansion that would justify supply restriction will not be complete until FY 2030. The trade-off is real. If anti-dumping duties are imposed, transformer manufacturers face higher input costs. Utilities face higher procurement costs. Renewable energy projects face longer supply lead times. MSMEs face existential margin pressure. Data centre operators face substation infrastructure delays. The cost of electricity India's primary development infrastructure will increase at the margin. These costs would be reasonable if domestic supply could absorb the demand that displaced imports leave behind. It cannot. Not yet. And that is the central problem with the timing of this investigation. India deserves the strongest possible domestic CRGO manufacturing base. Building that base requires investment, time, and strategic patience not a trade barrier that arrives before the capacity exists to make it viable. The question the government must answer is whether it is protecting an industry or protecting a supply chain. Right now, those are not the same thing. S M Steels will continue to monitor the progress of Case No. AD(OI) 15/2026 and provide market updates as provisional findings, oral hearing schedules, and disclosure statements are issued by the DGTR. References 1. DGTR Initiation Notification F. No. 6/17/2026-DGTR, Case No. AD(OI) 15/2026, dated 22 June 2026 dgtr.gov.in 2. GTRI Report on CRGO Steel Shortage, December 2024 Global Trade Research Initiative 3. Business Standard: "CRGO steel shortage could impact India's power sector expansion plans: GTRI" October 28, 2024 4. JFE Steel Corporation Press Release: "Expansion of Electrical Steel Manufacturing Capacity in India" August 4, 2025 jfe-steel.co.jp 5. John Cockerill India: Contract award for JSW JFE Nashik tunnel furnaces September 2025 johncockerill.com 6. IEA Electricity 2026 Report February 2026 iea.org 7. Ministry of Power Year End Review 2025 December 2025 pib.gov.in 8. Fastmarkets: Launch of Electrical Steel CFR India Price Assessment (MB-STE-0941) October 3, 2025 fastmarkets.com 9. Vestian Report on India Data Centre Capacity April 2026 businesstoday.in 10. Power Line Magazine: "Demand Surge: Key Trends and Outlook for the Transformer Industry" May 2026 powerline.net.in 11. Mordor Intelligence: India Transformer Market Report 2025–2034 12. CEA Resource Adequacy Plan Central Electricity Authority cea.nic.in 13. KNN India: "India Faces 30% Shortage of CRGO Steel" October 2024

CRGO stands for Cold Rolled Grain Oriented Steel. It is a specialised electrical steel designed for transformer cores and other static magnetic applications where magnetic flux flows predominantly in one direction. Unlike ordinary steel, CRGO undergoes a carefully controlled manufacturing process that aligns its grain structure in the rolling direction. This alignment allows magnetic flux to travel more efficiently, resulting in lower core loss, higher magnetic permeability, improved transformer efficiency, and reduced operating costs over the life of the equipment. Today, CRGO is the preferred core material for power transformers, distribution transformers, current transformers, potential transformers, and reactors across the world. CRGO Quick Facts: Property Value Full Form Cold Rolled Grain Oriented Steel Material Type Electrical Steel Primary Application Transformer Cores Silicon Content Approximately 3% Magnetic Characteristic Directional Common Grades M3, M4, M5, M6 Thickness Range 0.23 mm to 0.35 mm Core Benefit Low Core Loss Typical Users Transformer Manufacturers Why CRGO Is Used In Transformers Transformers operate continuously for decades. Even when a transformer is not supplying load, its core remains energised and consumes energy. The transformer core material therefore has a major impact on: No-load losses Energy efficiency Operating temperature Service life Running costs CRGO minimises magnetic losses, making it the preferred material for modern transformer manufacturing. Key Benefits of CRGO High magnetic permeability Low hysteresis loss Low eddy current loss Improved transformer efficiency Reduced operating temperature Lower energy wastage Long service life Properties of CRGO: Property Typical Value Silicon Content Around 3% Density Approximately 7650 kg/m³ Thickness Range 0.23 mm to 0.35 mm Electrical Resistivity Higher than conventional steel Core Loss Very Low Magnetic Permeability Very High Surface Insulation High Transformer Efficiency Excellent What Makes CRGO Different? The unique feature of CRGO is its grain orientation. During manufacturing, the grain structure is aligned in the rolling direction. This allows magnetic flux to pass through the material with lower resistance compared to conventional electrical steel. The result is a transformer core that operates more efficiently and wastes less energy. CRGO Manufacturing Process The production of CRGO involves several specialised steps: Process Purpose Hot Rolling Initial thickness reduction Cold Rolling Grain refinement Decarburization Carbon removal Intermediate Annealing Stress relief Final Annealing Grain orientation development Surface Coating Electrical insulation Slitting Customer width preparation Each stage contributes to the final magnetic performance of the steel. CRGO Grades Explained CRGO is available in several grades. The grade selection depends on efficiency requirements, transformer design, and project budget. Grade Thickness Typical Application M3 0.23 mm High Efficiency Power Transformers M4 0.27 mm Distribution Transformers M5 0.30 mm General Purpose Transformers M6 0.35 mm Cost Sensitive Applications Grade Selection Guide: Requirement Recommended Grade Lowest Core Loss M3 High Efficiency M3 / M4 Balanced Performance M4 Standard Applications M5 Budget Focused M6 CRGO vs CRNO The two most common electrical steels are CRGO and CRNO. Feature CRGO CRNO Full Form Cold Rolled Grain Oriented Cold Rolled Non-Oriented Grain Structure Oriented Random Magnetic Efficiency Higher Lower Core Loss Lower Higher Transformer Use Excellent Limited Motor Use Not Preferred Excellent Cost Higher Lower Magnetic Direction Directional Multi-Directional Which Is Better? Neither material is universally better. CRGO is ideal for transformer cores because magnetic flux follows a predictable path. CRNO is ideal for motors and rotating machines because magnetic flux changes direction continuously. Applications of CRGO CRGO is used wherever efficient magnetic flux transfer is required. Major Applications: Application Purpose Power Transformers Low Loss Core Construction Distribution Transformers Energy Efficient Operation Current Transformers (CTs) Accurate Measurement Potential Transformers (PTs) Voltage Measurement Reactors Flux Control Chokes Power Conditioning Transformer Laminations Core Manufacturing Transformer Core Manufacturing Operations After CRGO reaches a transformer core manufacturing facility, it undergoes several precision operations. Operation Purpose Slitting Width Preparation Cut To Length Processing Lamination Production Step Lap Core Manufacturing Reduced No Load Loss Mitred Core Construction Better Flux Distribution V Notching Joint Optimization Diamond Improved Core Geometry Double V Notching Advanced Joint Design Toroidal Core Manufacturing Circular Magnetic Path C Core Manufacturing Compact Core Design Core Stacking Core Building Core Assembly Final Construction Stress Relief Annealing Removal Of Cutting Stresses Core Testing Performance Verification Why Core Manufacturing Matters The quality of transformer core construction directly influences: Core loss No-load current Transformer noise Efficiency Reliability Even high-quality CRGO can perform poorly if processing is not done correctly. Prime CRGO vs Secondary CRGO The market generally offers two categories: Prime CRGO Secondary CRGO Mill Certified May Have Deviations Guaranteed Properties Application Dependent Higher Cost Lower Cost Critical Projects Suitable For Selected Uses Full Traceability Limited Traceability The choice depends on project requirements and technical specifications. Standards and Certifications CRGO is governed by several international standards: Standard Region IEC 60404 International JIS C2553 Japan ASTM A876 United States DIN EN 10107 Europe IS 3024 India These standards define testing methods, magnetic properties, dimensions, and quality requirements. FAQS What is CRGO? CRGO stands for Cold Rolled Grain Oriented Steel, a specialized electrical steel used primarily in transformer cores. Why is CRGO used in transformers? Because it offers high magnetic permeability and low core loss. What are CRGO grades? The most common grades are M3, M4, M5, and M6. What is the best CRGO grade? M3 generally provides the lowest core loss and highest efficiency. What is the difference between CRGO and CRNO? CRGO has oriented grains and is used in transformers. CRNO has non-oriented grains and is used in motors. What thicknesses are available? Typically 0.23 mm, 0.27 mm, 0.30 mm, and 0.35 mm. What is transformer core loss? The energy lost within the transformer core during magnetization. Why is grain orientation important? It allows magnetic flux to travel more efficiently, reducing losses. Is CRGO recyclable? Yes, CRGO scrap is widely recycled and reused. What industries use CRGO? Transformer manufacturing, power distribution, electrical equipment manufacturing, and energy infrastructure. About S M STEELS S M STEELS is a Chennai-based supplier and trader specialising in CRGO electrical steel and transformer core materials. Our product range includes: CRGO Prime Coils CRGO Slit Coils Transformer Core Laminations Step Lap Laminations Mitred Laminations V Notched Laminations Diamond Notched Laminations Double V Notched Laminations Toroidal Core Materials C Core Materials CRGO Secondary Sheets CRGO Scrap S M STEELS supports transformer manufacturers, core cutting facilities, electrical equipment manufacturers, and procurement professionals across India with reliable sourcing solutions and industry knowledge.

Quick Answer India needs approximately 400,000 metric tonnes of CRGO steel annually. Domestic production meets roughly 10–12%. The gap is bridged by imports — imports that are constrained by a certification system that has repeatedly created supply crises. As of May 2026, the domestic production gap will not close meaningfully until FY2028 at the earliest. Every transformer built in India until then depends on a supply chain that is structurally fragile. Table of Contents 1. The Scale of the Problem — In Numbers 2. How India Got Here — The Import Dependency Story 3. The BIS Bottleneck — Quality Control Becomes Supply Crisis 4. The HiB Grade Crisis Within the Crisis 5. What the Shortage Costs — MSMEs, Manufacturers, and the Grid 6. The JSW-JFE Expansion — What It Means and What It Doesn't 7. China's Role — The Uncomfortable Dependence 8. The BEE Star Rating Complication 9. Ground-Level Market Reality May 2026 10. What Needs to Happen — And What Probably Will 11. Conclusion 12. FAQ 1. The Scale of the Problem — In Numbers Let us start with what is verified and documented. In FY2023-24, India's CRGO steel demand stood at approximately 400,000 metric tonnes. Domestic production — primarily from JSW JFE Electrical Steel's Nashik facility — contributed approximately 50,000 metric tonnes, or 10–12% of total demand. India imported approximately 239,000 metric tonnes from China, Japan, Russia, and South Korea, constituting the major portion of supply. The arithmetic leaves India with a 30% structural shortfall — verified and documented by the Global Trade Research Initiative (GTRI) in their December 2024 report, which was covered by Business Standard, BW Businessworld, KNN India, and multiple other credible publications. That 30% gap is not a market anomaly. It is the baseline condition India's transformer manufacturers are operating under — every quarter, every procurement cycle, every delivery commitment. And it is about to get significantly more complicated. India's CRGO demand is projected to grow at 10–12% annually through 2030, driven by power sector expansion, renewable energy integration, BEE efficiency mandates, and — as we will address in our companion blog — a $126 billion data centre investment pipeline that nobody in the CRGO procurement conversation is currently adequately accounting for. If demand grows at 10% annually and domestic supply expands on the JSW-JFE timeline (operational capacity increases not expected at scale until FY2028), the supply gap in absolute tonnage terms will widen before it narrows. This is the structural reality that market participants are navigating right now, in May 2026. 2. How India Got Here — The Import Dependency Story CRGO steel manufacturing is one of the most technically complex processes in the global steel industry. The controlled secondary recrystallisation process — which creates the Goss texture that gives CRGO its performance — requires decades of process know-how, specialised equipment, and substantial capital investment. For most of India's transformer manufacturing history, the country simply did not have this capability domestically. The material was imported — primarily from Japan and South Korea, the historical leaders in CRGO quality — and transformer manufacturers built their supply chains, specifications, and procurement cycles around import-led supply. This created a dependency that was manageable as long as two conditions held: import prices remained reasonably stable, and the import pipeline remained open and predictable. Both of those conditions have been repeatedly disrupted since 2020. The story of India's CRGO supply crisis is therefore not simply a story about industrial policy failure. It is the story of what happens when an industry's entire raw material dependency is concentrated in import supply channels that are simultaneously subject to regulatory, geopolitical, and logistics risk — and when the domestic alternative takes years to build. Thyssenkrupp Electrical Steel India Pvt Ltd, based in Nashik, was for years the only meaningful domestic producer of CRGO in India. Its capacity was limited — a fraction of national demand. JSW Steel acquired this facility in January 2025 for ₹4,159 crore, creating what is now JSW JFE Electrical Steel (J2ES), a 50:50 joint venture with Japan's JFE Steel Corporation. That acquisition gave India a foundation to build on. But building on it takes time — and time is precisely what the market does not have. 3. The BIS Bottleneck — Quality Control Becomes Supply Crisis The single most consequential regulatory factor in India's CRGO supply crisis is the Quality Control Order (QCO) implemented by the Bureau of Indian Standards in 2020. The QCO mandates that all CRGO steel imported into India must comply with IS 3024:2015 and carry BIS certification. The intent was sound — to prevent substandard electrical steel from entering India's transformer supply chain. The execution has created a structural bottleneck. Here is how it works in practice: Foreign CRGO suppliers — mills in Japan, South Korea, China, Russia, and Europe — must obtain and maintain BIS certification to export to India. This certification process involves testing, documentation, inspection, and ongoing compliance. The licenses are time-limited. Renewal requires re-application and re-inspection. BIS has, on multiple occasions, been slow to renew these licenses — creating periods where major international mills technically cannot ship to India despite India needing their material urgently. The GTRI report specifically identified delayed BIS license renewals for foreign suppliers from Japan, South Korea, and China as the immediate cause of supply disruption. KNN India reported in May 2024 that Chinese manufacturers including Bao, Wisco, and Shougang had been forced to halt exports to India following license lapses — eliminating supply from producers accounting for a significant portion of global CRGO capacity at a stroke. The problem is not the QCO in principle. The problem is the gap between how long renewal processes take and how quickly supply disruptions materialize when they lapse. When a major Chinese mill's BIS license expires and renewal is delayed by several months, the market does not have the domestic production base to absorb the gap. Traders scramble. Prices spike. MSME transformer manufacturers — who cannot place large forward orders or maintain expensive safety stock — are hit first and hardest. As of May 2026, the BIS certification landscape remains a source of ongoing uncertainty. The exemption regime that was put in place for some steel categories through December 2025 created temporary relief, but the structural question — whether the QCO framework will be reformed to remove the renewal lag risk — remains unresolved. 4. The HiB Grade Crisis Within the Crisis Inside the broader CRGO shortage, there is a specific and acute shortage of High Permeability (HiB) grade CRGO that deserves separate attention. Industry participants have reported that India's annual CRGO demand of approximately 325,000–400,000 tonnes breaks down roughly as follows: conventional grades (M3–M6) accounting for approximately 100,000–125,000 tonnes, and HiB grades accounting for the balance — making HiB the majority of India's CRGO requirement by volume. The BEE's star rating mandate, effective January 2025, has accelerated this shift. Higher star-rated transformers require lower no-load losses. Lower no-load losses require higher-grade CRGO — specifically HiB grades like 23ZDMH90, 27ZDMH95, and domain-refined variants. The problem: HiB grade CRGO is the most technically demanding to produce, is manufactured by the fewest global suppliers, and is subject to the most acute supply constraints when import pipelines are disrupted. Domestic production at the JSW-JFE Nashik facility is currently certified and operational. But at 50,000 TPA total capacity, it cannot begin to cover India's HiB demand, which industry estimates place well above 150,000 tonnes annually and growing. The transformer manufacturer facing a BEE audit for star-rated certification cannot substitute M5 for HiB and meet the compliance requirement. The material is specific, the application is regulated, and the supply is constrained. This is a compounding problem with no short-term resolution. 5. What the Shortage Costs — MSMEs, Manufacturers, and the Grid The CRGO shortage is not an abstract supply chain statistic. It has direct, measurable costs across the transformer manufacturing ecosystem. For MSMEs: GTRI explicitly identified MSMEs as the most vulnerable segment. Small and medium transformer manufacturers typically purchase CRGO in smaller quantities, cannot negotiate long-term supply contracts with major mills, and do not have the working capital to build inventory buffers. When supply tightens, they pay spot prices — which market participants report can spike sharply during supply disruptions. When supply becomes uncertain, their delivery commitments to DISCOM customers are at risk, which in turn affects payment cycles and project financing. For mid-sized transformer manufacturers: The cost is felt differently — not in inability to source, but in the premium paid for reliable supply. Manufacturers who have relationships with established traders or who can maintain safety stock are insulated from the worst price spikes, but they absorb the baseline cost of a market where landed import prices are structurally elevated by BIS-compliance requirements and limited supplier competition. For India's grid: The downstream cost of CRGO shortage is delayed transformer delivery. Transformer lead times in India have extended significantly. DISCOM procurement pipelines that expected delivery within 6–8 months are experiencing 12–18 month waits in some categories. This directly impacts the execution timeline of grid upgrades, rural electrification programmes, renewable energy integration, and the substation buildout required to connect new generation capacity. When a solar park is ready but the transformers connecting it to the grid are delayed, the renewable energy target slips. When a DISCOM tender is funded but transformers cannot be sourced, the project execution gap widens. The CRGO shortage is not a raw material industry problem. It is an energy infrastructure execution problem. 6. The JSW-JFE Expansion — What It Means and What It Doesn't In August 2025, JSW Steel and JFE Steel Corporation jointly announced a ₹5,845 crore (approximately $669 million) investment to expand CRGO production capacity across two facilities: - Nashik, Maharashtra (J2ESN): Expansion from 50,000 TPA to 250,000 TPA - Vijayanagar, Karnataka (new facility): Originally planned at 62,000 TPA, expanded to 100,000 TPA Combined target capacity upon full commissioning: 350,000 TPA by FY2028 This is a transformative announcement for India's CRGO supply landscape. If executed on schedule, JSW-JFE would move India from 10–12% domestic CRGO self-sufficiency to potentially meeting the majority of national demand — a strategic shift that GTRI and other industry analysts have been calling for. What it means for the market: a credible path toward import substitution, a domestic pricing anchor that does not move with freight and currency, and a reduced exposure to BIS certification disruption for imported material. What it doesn't mean for the market right now in May 2026: The Nashik expansion is underway — construction of annealing and pickling lines has been commissioned. The Vijayanagar facility is in earlier stages. Full commissioning at combined 350,000 TPA is a FY2028 target, not a current reality. Between now and FY2028, India continues to depend on imports for 85%+ of its CRGO requirement. The BIS certification risk is unchanged. The HiB grade shortage is unchanged. The procurement environment for transformer manufacturers remains as it is today — tight, expensive, and subject to disruption. The JSW-JFE expansion is the right answer to a real problem. But it is a FY2028 answer to a May 2026 market. 7. China's Role — The Uncomfortable Dependence India's relationship with Chinese CRGO is the supply chain story that the industry discusses privately but rarely addresses in public. China is the world's largest CRGO producer, accounting for approximately 45% of global production capacity. Chinese CRGO exports jumped from 494,800 metric tonnes in 2023 to 666,300 metric tonnes in 2024 — a 34.7% year-on-year increase — as Chinese mills modernised technology and aggressively expanded capacity. India is one of China's primary CRGO export destinations. The practical reality: without Chinese CRGO supply, India cannot close its supply gap. No combination of Japanese, Korean, Russian, and European supply comes close to substituting the volume China provides. The strategic reality: India's BIS QCO framework has, at various points, been used to restrict or limit Chinese CRGO access — reflecting broader trade policy positions. When Chinese BIS licenses lapse, as happened with Bao, Wisco, and Shougang in 2024, the market tightens immediately. There is no readily available alternative of equivalent scale. This creates a policy tension that has no easy resolution: India wants to reduce import dependency (hence the JSW-JFE investment), prefers to diversify away from China (hence the emphasis on Japanese and Korean supply), but cannot afford to restrict Chinese supply before domestic alternatives are operational. The transformer manufacturer sitting in the middle of this geopolitical-industrial tension has no direct influence over its resolution. They can only navigate the procurement environment it creates — building supplier relationships across origins, maintaining appropriate inventory buffers, and working with traders who have the market intelligence to move material when the window is open. 8. The BEE Star Rating Complication India's Bureau of Energy Efficiency upgraded the star rating standards for distribution transformers effective January 1, 2025. The upgrade raised the efficiency bar — what was previously a 3-star standard now requires performance that was previously 4-star. For CRGO procurement, this translates directly into grade migration — transformer manufacturers moving away from M5 and M6 grades toward M4, M3, and HiB to achieve the no-load loss levels required for compliance. This grade migration happens at exactly the moment when HiB supply is most constrained. The regulatory push for efficiency improvement is structurally sound. Its timing, however, has increased demand for precisely the grades that are hardest to source domestically and most subject to BIS certification risk on the import side. The practical impact for transformer manufacturers: - Specifications must be updated across product lines to comply with new star rating requirements - Grade upgrades mean higher material cost per transformer, compressing margins unless pricing is renegotiated with DISCOM customers - Sourcing higher grades requires qualification of suppliers who can consistently supply M4 and HiB to documented mill test certificate standards — not all traders in the secondary market can provide this The BEE mandate is creating a quality pull in the market at the same time as a supply push constraint. For companies that navigate this well — with the right grade specifications, documented supply sources, and procurement timing — it is an opportunity to differentiate. For those caught without compliant supply when an audit comes, the cost is a failed certification and a delayed order. --- 9. Ground-Level Market Reality May 2026 What is actually happening in India's CRGO market in May 2026? Based on market participant reports and publicly available data: 0.23mm supply (M3 grade) is becoming specifically difficult. Transformer manufacturers requiring the thinnest, highest-efficiency grade are finding availability tightest in this specification. Import volumes of M3 from Japan have been constrained by limited mill allocation. Domestic production at Nashik does not yet cover the demand gap for this grade. Secondary sheet and slit coil availability has been inconsistent. The secondary market — which provides cost-effective material for less critical applications — has seen periods of tightness as primary import volumes have been disrupted, followed by periods of overhang when traders who bought in anticipation of demand have been left holding inventory as procurement slows. MSMEs are buying hand to mouth. Working capital constraints and uncertain supply are combining to push small transformer manufacturers into a reactive procurement posture — buying what is available when it is available, at whatever price the market is offering, rather than forward purchasing at strategic points in the price cycle. Established traders with diversified supplier bases are the most valued counterparties in the market. Manufacturers who have historically prioritised price over supply reliability are discovering that in a constrained market, the supplier who can guarantee availability — documented origin, BIS compliant, consistent specification — is worth more than the lowest quote. Price discovery remains opaque. There is no published CRGO index price in India. Transaction prices are negotiated bilaterally, and the spread between the best-informed buyers and the least-informed is significant. This opacity benefits traders with market intelligence and penalises manufacturers who treat CRGO as a commodity purchase. --- 10. What Needs to Happen — And What Probably Will What needs to happen: BIS must reform its license renewal process to eliminate the lag risk — maintaining quality standards while ensuring continuous supply access for qualified international suppliers. The industry has repeatedly called for this. GTRI specifically recommended expedited approval processes in their 2024 report. As of May 2026, structural reform of the process remains incomplete. India's CRGO demand forecasting needs to incorporate data centre, AI infrastructure, and renewable energy integration requirements explicitly — not just DISCOM and conventional transformer demand. The demand trajectory is steeper than current official projections acknowledge. The JSW-JFE expansion must execute on its FY2028 timeline. Any delay pushes the supply relief window further and extends the period of import dependency. What will probably happen: The JSW-JFE expansion will proceed — the investment is committed and the JFE technology partnership provides credibility to the execution plan. But commissioning timelines for complex metallurgical facilities have a history of slippage. BIS reform will be incremental. License processing will improve at the margins. Full structural reform is unlikely in the near term. Import volumes will continue to be dominated by Chinese supply — with periodic disruption when license and trade policy factors intervene. Prices will remain elevated and volatile through FY2027, with a potential easing in FY2028 as domestic capacity comes online — assuming it does on schedule. The manufacturers and traders who build the right supply chain infrastructure now — diversified origins, BIS-compliant documentation systems, grade-specific inventory strategies — will be better positioned when the market tightens again, as it periodically will. Conclusion India's CRGO supply reality in May 2026 is this: the demand is real, growing, and accelerating. The domestic production base is being built — but it is a FY2028 solution. The import system has structural fragility built into it by design. And the downstream consequences of supply disruption — delayed transformers, slower grid upgrades, missed energy targets — are measured not in steel tonnes but in megawatts and millions of people. The transformer manufacturers, traders, and procurement professionals navigating this market right now are not managing a temporary shortage. They are managing a structural supply transition that will define the next two to three years of India's electrical infrastructure supply chain. The ones who understand that transition — rather than waiting for it to resolve itself — will not be caught short when the next disruption arrives. Because the next disruption is not a question of if. It is a question of when and how prepared you are. About SM Steels SM Steels is a Chennai-based specialist in CRGO core material, CRGO coils, secondary sheets, and CRGO scrap. We track India's CRGO supply chain daily — origin by origin, grade by grade — and supply transformer manufacturers across India with documented, BIS-compliant material. 📍 S M Steels, Chennai | 🌐 www.smsteels.org | 📞 +91 89394 61720 We don't just supply CRGO. We understand the market it comes from. FAQ Q: How much CRGO does India produce domestically? A: As of FY2023-24, India produced approximately 50,000 metric tonnes of CRGO annually — meeting only 10–12% of total national demand of approximately 400,000 metric tonnes. The JSW JFE Electrical Steel facility in Nashik is India's primary domestic producer. Q: Why is there a CRGO shortage in India? A: The shortage has multiple causes. India's domestic production meets only 10–12% of demand. Imports are constrained by the BIS Quality Control Order, which requires all imported CRGO to hold BIS certification — and delayed license renewals have periodically cut off supply from major international mills. The shortage is structural, not temporary. Q: What is the BIS QCO for CRGO? A: The Quality Control Order implemented by the Bureau of Indian Standards in 2020 mandates that all CRGO steel imported into or produced in India must comply with IS 3024:2015 and carry BIS certification. The intent is quality assurance. The practical effect has been supply disruption when license renewals for foreign suppliers are delayed. Q: When will India's CRGO shortage be resolved? A: The JSW-JFE joint venture has announced capacity expansion to 350,000 TPA by FY2028. If executed on schedule, this would materially reduce India's import dependency. Between now and FY2028, the structural supply gap persists. Q: Which countries supply CRGO to India? A: India's primary CRGO import sources are China (the largest single origin, accounting for approximately 45% of global CRGO production capacity), Japan, South Korea, and Russia. European sources play a smaller role. Q: What is HiB CRGO and why is there a shortage? A: Hi-B (High Permeability) CRGO is an advanced grade with superior magnetic properties, required for high-efficiency transformer designs and BEE star-rated distribution transformers. It is produced by fewer global suppliers than conventional grades, is more technically demanding to manufacture, and has seen acute shortage in India as the BEE mandate has increased demand precisely when supply is constrained.

Quick Answer: What Is the Full Form of CRGO? CRGO stands for Cold Rolled Grain Oriented. Full form broken down: C — Cold Rolled (manufacturing process) R — Rolled (the physical action applied to the steel) G — Grain Oriented (the crystalline structure deliberately aligned) O — (part of "Oriented") CRGO is a specialised type of electrical steel — a silicon-iron alloy — engineered so that its internal grain structure is precisely aligned in one direction. This alignment is not accidental. It is achieved through a highly controlled manufacturing process and is the reason CRGO performs at a level that no other steel can match inside a transformer core. In India's power infrastructure, CRGO core material is the single most critical raw input inside every transformer — from the small 25 kVA distribution unit at the end of your street to the 500 MVA power transformers anchoring high-voltage substations across the national grid. Table of Contents CRGO Full Form — Word by Word Explained The History of CRGO — How It Was Discovered What Is CRGO Steel? The Science, Simply Explained How CRGO Is Manufactured — Step by Step CRGO Grades: M3, M4, M5, M6 Explained What Is CRGO Lamination? What Is CRGO in a Transformer — The Core Connection Types of Core Losses CRGO Eliminates CRGO vs CRNO — What Is the Difference? Hi-B CRGO — The Advanced Grade CRGO Material Properties — Technical Specifications CRGO and India's Power Sector — The Real Picture India's CRGO Import Dependency — The Strategic Problem BEE Star Rating and CRGO — What Changed in 2025 Where CRGO Is Used Beyond Transformers Buying CRGO in India — What to Know Frequently Asked Questions 1. CRGO Full Form — Word by Word Explained C — Cold "Cold" refers to the temperature at which the steel is rolled during manufacturing. Cold rolling is done at or near room temperature — below the steel's recrystallisation temperature. This is in contrast to hot rolling, which occurs at temperatures exceeding 1,100°C. Why does cold rolling matter? Because rolling steel cold allows for extreme precision in thickness control — down to fractions of a millimetre — and, critically, it is the mechanical force of cold rolling that begins the process of aligning the internal grain structure of the steel in a preferred direction. R — Rolled Rolling means passing the steel through a series of progressively narrower rollers to reduce its thickness. For CRGO, this is done in carefully controlled stages, with intermediate annealing (heat treatment) steps between passes. The rolling direction is paramount — it becomes the direction of "easy magnetisation" in the finished product. G — Grain "Grain" in metallurgy refers to the individual crystals that make up the microstructure of a metal. Steel, like all metals, is polycrystalline — it consists of millions of microscopic crystalline regions called grains. In ordinary steel, these grains are oriented randomly in all directions. In CRGO steel, the grains are not random. They are aligned with extraordinary precision in a specific crystallographic direction — the [001] direction, known as the "easy axis" of magnetisation in iron-silicon alloys. O — Oriented "Oriented" means the grains have a preferred, deliberate direction — specifically the Goss texture, denoted {110}<001> in crystallographic notation. In practical terms, this means that if you imagine each grain as a tiny compass, in CRGO steel, all those compasses point in approximately the same direction — aligned with the rolling direction of the sheet. This alignment is what makes CRGO extraordinary. Magnetic flux — the invisible force that makes a transformer work — flows most efficiently along the easy axis of iron crystals. By aligning those crystals, CRGO gives magnetic flux a perfectly aligned highway to travel, reducing resistance (called reluctance) and therefore minimising energy loss. 2. The History of CRGO — How It Was Discovered The story of CRGO begins not in a transformer factory, but in a research laboratory in the early 1930s. The Problem That Existed Before CRGO Before CRGO was developed, transformer cores were made from hot-rolled silicon steel. This material was a significant improvement over plain iron, but it had a fundamental limitation: its grains were randomly oriented. Magnetic flux had to fight its way through a chaotic crystalline landscape, losing energy as heat in the process. Transformer efficiencies were meaningful but not optimal. Engineers knew they were leaving performance on the table. Norman P. Goss and the 1934 Discovery In 1933–1934, an American metallurgist named Norman P. Goss made a discovery that would permanently transform electrical engineering. Goss discovered that by applying specific cold rolling and annealing techniques to silicon steel, he could force the grains to align in a preferred crystallographic orientation — the {110}<001> orientation that now bears his name: the Goss texture. His landmark paper, published in 1934, described how this texture dramatically improved magnetic properties along the rolling direction. The material he created was the first true Cold Rolled Grain Oriented steel. Goss himself noted in his writings: "I have experimental evidence which leads me to believe that there is an apparent relation between the grain size and ductility of a specimen and its magnetic properties." This was a foundational understatement. What he had actually discovered was the basis for all modern transformer core technology. Commercial Adoption: 1940s–1960s CRGO steel was first commercially applied to transformer cores in the 1940s. By the 1950s, it had largely replaced hot-rolled silicon steel in large transformer applications. By the 1960s, more advanced grades — M5, M4, and M3 — were developed, enabling thinner laminations, lower core losses, and progressively more efficient transformers. By 1995, CRGO had become the universal global standard for transformer cores. 3. What Is CRGO Steel? The Science, Simply Explained For the Non-Engineer: An Analogy Imagine you're trying to push a crowd of people through a doorway. If the crowd is facing in random directions, they bump into each other, create friction, and moving them is difficult and wasteful. Now imagine everyone is facing the same direction, aligned, moving together. The same force moves the same crowd with far less effort. CRGO steel does this with magnetic energy. The "crowd" is the magnetic domains inside the steel. In ordinary steel, these domains point in random directions. CRGO aligns them along the rolling direction, so magnetic flux — the energy a transformer uses to convert electrical power — moves through the steel with dramatically less resistance and loss. For the Technical Reader: The Physics CRGO is an iron-silicon alloy with a silicon content of approximately 3.0–3.25% by weight. The silicon serves a critical function: it increases the electrical resistivity of the steel, which directly reduces eddy current losses (explained in Section 8). The key to CRGO's performance is its Goss texture — the {110}<001> crystallographic orientation. In this structure: The {110} plane lies parallel to the rolling plane (the surface of the sheet) The <001> direction — the "easy axis" of magnetisation in body-centred cubic iron — lies parallel to the rolling direction This means magnetic flux, when directed along the rolling direction, encounters the minimum possible magnetic reluctance. The result is: High magnetic permeability along the rolling direction (magnetic flux flows easily) Low hysteresis loss (less energy wasted in each magnetisation cycle) Low eddy current loss (high silicon content raises resistivity) Reduced magnetostriction (less dimensional change under magnetisation, which means quieter transformers) The stacking factor — the ratio of actual steel to total core volume when laminations are assembled — typically ranges from 96% to 97% depending on grade, meaning very little space is wasted in the assembled core. 4. How CRGO Is Manufactured — Step by Step CRGO manufacturing is one of the most technically demanding processes in the steel industry. There are only a handful of facilities in the world capable of producing it, primarily in Japan, South Korea, Germany, Russia, and China. This concentration of production capability is at the core of India's supply chain vulnerability (discussed in Section 13). Step 1: Raw Material Preparation The process begins with very pure iron and precise quantities of silicon, along with trace elements that aid in grain growth control. The target silicon content is approximately 3.0–3.25% — high enough to maximise resistivity, but below ~3.5%, beyond which the steel becomes too brittle for cold rolling. Step 2: Hot Rolling The steel is cast into slabs and hot-rolled at temperatures above 1,100°C to produce a hot band — typically 2–2.5 mm thick. This hot band is the starting material for cold rolling. Step 3: Normalising Anneal The hot band is annealed (heated and slowly cooled) to normalise its microstructure and remove internal stresses introduced by hot rolling. Step 4: First Cold Rolling The normalised band is passed through cold rollers to reduce thickness significantly — typically by 50–70%. This is done at room temperature (below the recrystallisation temperature), which introduces significant work hardening and begins the process of grain alignment. Step 5: Intermediate (Decarburisation) Anneal The cold-rolled strip is annealed in a controlled atmosphere — carefully managed for temperature, atmosphere composition, and dew point — to: Decarburise the steel (reduce carbon content to approximately 0.005% or lower). Carbon is an enemy of grain growth; removing it is essential. Begin primary recrystallisation: forming small, uniform, equiaxed grains. A coating of magnesium silicate glass forms on the surface during this anneal. This glass layer will provide electrical insulation between successive laminations in the finished transformer core. Step 6: Second Cold Rolling (to Final Gauge) The steel is cold-rolled again to its final thickness — 0.23 mm, 0.27 mm, 0.30 mm, or 0.35 mm depending on the target grade. This is an extremely precise operation; thickness tolerances are measured in microns. Step 7: High-Temperature Final Anneal (Secondary Recrystallisation) This is the most critical and technically remarkable step in the entire process. The steel is annealed at temperatures of approximately 1,100–1,200°C for extended periods. During this anneal, a phenomenon called secondary recrystallisation — also called abnormal grain growth — occurs. A small number of grains that happen to have the Goss orientation ({110}<001>) grow explosively at the expense of all other grains, consuming and replacing them until the entire microstructure is dominated by Goss-oriented grains. This is not random. It is the result of the precise control of every preceding step — composition, rolling reductions, annealing temperatures, and atmosphere — that sets the conditions for exactly this outcome. The result is a steel in which essentially all grains are aligned within a few degrees of the ideal {110}<001> orientation. The magnetic flux can now travel through the material as if on a precision-engineered highway. Step 8: Insulation Coating A final insulating coating is applied to the surface of the sheet. This coating serves two purposes: It provides electrical insulation between laminations when stacked in a transformer core, preventing inter-laminar eddy currents. It applies a tensile stress to the surface that further improves magnetic properties. Step 9: Slitting and Finishing The finished CRGO mother coil is slit to the widths required by transformer manufacturers. Slitting accuracy is critical — inconsistent widths lead to poor lamination fit and degraded core performance. 5. CRGO Grades: M3, M4, M5, M6 Explained CRGO steel is commercially available in four main grades in India, designated by the letter M (for Magnetic) followed by a number. The grade number corresponds to the thickness and core loss characteristics of the material. The fundamental rule: Lower number = Thinner steel = Lower core loss = Higher efficiency = Higher cost. Grade Comparison Table Grade Thickness Core Loss Level Primary Application Cost Level M3 0.23 mm Lowest Large power transformers, high-efficiency designs Highest M4 0.27 mm Low Distribution transformers, medium-voltage applications High M5 0.30 mm Moderate General-purpose transformer cores Moderate M6 0.35 mm Moderate-High Small transformers, control transformers Most economical M3 Grade (0.23 mm) The thinnest commercially standard CRGO grade. Ultra-low core loss makes it ideal for high-efficiency transformer designs where minimising no-load losses is the priority. Used in large power transformers, extra-high-voltage applications, and designs where efficiency mandates are strict. The thinner laminations mean fewer eddy current paths, reducing eddy current losses significantly compared to M5 or M6. The trade-off is higher material cost and more demanding handling during fabrication. M4 Grade (0.27 mm) The workhorse grade of India's distribution transformer industry. M4 strikes an engineering-optimal balance between core loss performance and procurement cost. It is the most commonly specified grade in distribution transformer manufacturing in India. Core losses are meaningfully lower than M5 and M6, making it well-suited for transformers that operate continuously at load — where no-load losses accumulate over thousands of hours annually. M5 Grade (0.30 mm) A proven, reliable grade for standard transformer applications where M4's efficiency premium is not justified by the application. Magnetic stability is well-established across decades of use. Suitable for applications where moderate core loss is acceptable and initial material cost is a greater constraint than lifecycle energy cost. M6 Grade (0.35 mm) The most economical standard CRGO grade. At 0.35 mm, it is the thickest, meaning more eddy current paths per lamination, which translates to marginally higher core losses. Used in smaller control transformers, instrument transformers, and applications where efficiency requirements are moderate. The stacking factor for M6 is approximately 97% — actually slightly higher than thinner grades, because the thicker laminations are proportionally more material and less insulation coating per unit of core volume. The Grade Selection Decision in Practice For transformer manufacturers, grade selection is not simply a performance decision — it is a cost-lifecycle calculation. A transformer running continuously for 25 years with M4 instead of M6 will lose meaningfully less energy as heat over its operating life, with the energy savings often more than compensating for the higher material cost over the transformer's lifetime. This is the economic logic behind India's BEE star rating push for higher-grade CRGO (see Section 14). Stacking Factor — A Critical Design Parameter The stacking factor is the ratio of net steel cross-section to the gross cross-section of the assembled core. It accounts for the space taken by the insulation coating between laminations. M4 (0.27 mm): approximately 96% stacking factor M5 (0.30 mm): approximately 96.5% stacking factor M6 (0.35 mm): approximately 97% stacking factor In core design calculations, the stacking factor directly affects the required gross core area and therefore the physical dimensions of the transformer. Underestimating it leads to cores that do not achieve rated flux density. 6. What Is CRGO Lamination? The Core Is Not a Solid Block One of the most important practical facts about CRGO in transformer manufacturing is that the core is never built from a solid piece of steel. If it were, eddy currents — loops of electrical current induced by the alternating magnetic flux — would circulate through the entire cross-section of the core, generating enormous heat losses. Instead, the transformer core is built from laminations — thin strips of CRGO steel, each individually coated with an insulating layer, stacked together to form the core assembly. What Is a CRGO Lamination? A CRGO lamination is a precisely cut, individually insulated thin sheet of CRGO steel, typically: Thickness: 0.23 mm to 0.35 mm (depending on grade) Width: Slit to the specification required by the core design Surface coating: Magnesium silicate glass + additional insulation coating applied during manufacturing Cut geometry: Square-cut (90°), mitred-cut (45°), or stepped-lap configurations depending on the core design Each lamination is electrically isolated from its neighbours by the surface coating. This means that eddy currents can only flow within each individual thin lamination — not across the full core cross-section. Since eddy current loss is proportional to the square of the lamination thickness, reducing thickness from 0.35 mm to 0.23 mm has a disproportionately large impact on loss reduction. Lamination Assembly Methods Stacked Core (Flat Stacked): Individual laminations are cut and stacked to form the core shape. The most common method for distribution and power transformers. Laminations are typically interleaved at joints to reduce air gap effects. Wound Core (Toroidal or C-Core): A continuous strip of CRGO is wound around a mandrel to form a closed magnetic path. Eliminates most joints and therefore minimises joint losses. Common in instrument transformers and some distribution transformer designs. Step-Lap Construction: An advanced stacking technique where the lamination joints are staggered in steps across the thickness of the core. This distributes the air gap over a larger area, reducing the local flux concentration at joints and further lowering core losses. High-performance power transformer cores typically use step-lap construction. CRGO Core in Numbers Transformer core laminations can account for up to 70% of a transformer's material cost. This single fact — that laminations are the dominant material cost in a transformer — explains why CRGO pricing has such outsized influence on the transformer industry's economics. A 15% rise in CRGO prices does not cause a 15% rise in transformer costs. It can cause a 10–12% rise in transformer costs — which, across an industry producing millions of units annually, represents enormous financial impact. 7. What Is CRGO in a Transformer — The Core Connection Why Every Transformer Needs a Core A transformer works on the principle of electromagnetic induction. Alternating current in the primary winding creates an alternating magnetic flux. This flux must travel through a closed magnetic path from the primary winding to the secondary winding. The core provides that magnetic path. Without a core — or with a poor core — most of the magnetic flux would leak into the air, and the transformer would be wildly inefficient, requiring impractically large windings to achieve any useful power transfer. Why CRGO Is the Material of Choice for Transformer Cores The transformer core must: Carry high magnetic flux densities — without saturating (reaching a state where it cannot carry more flux) Do so with minimal energy loss — because every watt lost in the core is wasted as heat Maintain these properties continuously — 24 hours a day, 365 days a year, for 25–30 years of transformer life Do this at a manageable cost and weight CRGO satisfies all four requirements better than any other commercially available material at scale. Its high magnetic permeability along the rolling direction means it can carry high flux density without saturation. Its low core loss means minimal energy waste. Its silicon content and insulation coating ensure durability. And while it is not cheap, it is economically viable at the scale India's transformer industry operates. The Rolling Direction Must Align with the Flux Path One critical constraint in transformer core design using CRGO: the rolling direction of the CRGO sheet must align with the direction of magnetic flux flow in the core. Because CRGO's exceptional properties exist only in the rolling direction, cutting laminations at the wrong angle — or assembling a core with CRGO oriented incorrectly relative to the flux path — destroys the performance advantage of the material entirely. This is why transformer core design and CRGO lamination cutting are precision engineering operations, not simple fabrication tasks. The angle at which CRGO is cut (90° square cuts, 45° mitred cuts, or step-lap configurations at the corners) is determined by the need to maintain rolling-direction alignment as the flux turns corners in the core geometry. From CRGO Coil to Finished Core: The Manufacturing Chain The journey from CRGO mother coil to functioning transformer core involves multiple steps, each adding value and requiring precision: Mother coil arrives from mill (Japan, Korea, or domestic source) — typically 900–1,100 mm wide Slitting — mother coil is slit into narrow coils at the width required by the transformer design Cutting/Stamping — slit coils are cut into individual laminations of the required geometry (E-I, L, T, mitre, step-lap) Annealing (stress relief) — cut laminations are annealed to relieve stresses introduced by cutting, which would otherwise degrade magnetic properties at the cut edges Core assembly (stacking) — laminations are precisely stacked and interlocked to form the core, with careful attention to joint configuration and clamping pressure Testing — assembled cores are tested for no-load loss and exciting current before winding Each step in this chain is a potential source of performance degradation if not executed correctly. The quality of the CRGO material is necessary but not sufficient — the entire downstream process must maintain the material's properties. 8. Types of Core Losses CRGO Eliminates Understanding what CRGO actually does inside a transformer requires understanding what core losses are and why they matter. What Are Core Losses? Core losses — also called iron losses or no-load losses — are the energy losses that occur in the magnetic core of a transformer every second it is energised, regardless of whether it is carrying any load. A transformer connected to the grid but powering nothing at 2 AM is still losing energy through its core. Over the 25–30 year life of a distribution transformer, these no-load losses represent a very significant portion of total energy consumed. Core losses have two components: 1. Hysteresis Loss Every time the alternating current in the transformer's primary winding reverses direction (100 times per second at 50 Hz — 50 forward cycles and 50 reverse cycles), the magnetic domains inside the core must flip their orientation to follow the changing magnetic field. This domain reversal is not free. It requires energy to overcome the internal friction of the domain walls moving through the steel crystal structure. This energy is dissipated as heat. It is called hysteresis loss. The magnitude of hysteresis loss depends on the material's coercive force — how hard it is to flip the domains. CRGO's aligned grain structure dramatically reduces coercive force in the rolling direction, meaning domains flip with far less energy expenditure than in random-grain steel. Hysteresis loss is proportional to Bmax^1.6 × frequency, where Bmax is the peak magnetic flux density. This means that operating transformers at the correct flux density — and using CRGO grades that allow higher operating flux density without saturation — directly reduces hysteresis losses. 2. Eddy Current Loss The alternating magnetic flux in the transformer core also induces voltage — and therefore circulating currents — within the steel itself. These circulating currents (eddy currents) flow through the steel and generate heat. This is eddy current loss. CRGO attacks eddy current loss through two mechanisms: Silicon content (~3.25%): Silicon dramatically increases the electrical resistivity of the steel — from approximately 10 micro-ohm-centimetres for pure iron to approximately 48 micro-ohm-centimetres for CRGO. Higher resistivity means that for the same induced voltage, less current flows, and therefore less power is wasted as heat. This is why every CRGO material specification includes a resistivity value of approximately 48 µΩ·cm. Lamination (thin sheets): Eddy current loss is proportional to the square of the lamination thickness. Cutting a lamination from 0.35 mm (M6) to 0.23 mm (M3) reduces eddy current loss by approximately (0.35²/0.23²) = 2.31 times in the eddy current component. This is why thinner grades provide substantially lower total core loss, and why the trend in high-efficiency transformer design is always toward thinner laminations. Eddy current loss is proportional to Bmax² × f² × t², where f is frequency and t is lamination thickness. Total Core Loss in Practice The best CRGO grades available today achieve core losses as low as 0.9 W/kg at 1.7 Tesla and 50 Hz for Hi-B grades. Conventional M-grade CRGO typically achieves 1.0–1.3 W/kg at 1.5 Tesla and 50 Hz depending on grade. By comparison, older non-oriented steels exhibited losses of 2–4 W/kg under the same conditions — a 2–4x improvement represents an enormous reduction in energy waste at national scale. For a country like India, where hundreds of thousands of distribution transformers are energised continuously, the difference between M4-grade CRGO cores and substandard or wrong-grade materials translates to hundreds of millions of kilowatt-hours of energy saved or wasted annually. This is not a technical abstraction. It is a national energy efficiency issue. 9. CRGO vs CRNO — What Is the Difference? CRNO stands for Cold Rolled Non-Oriented steel. It is also a silicon-iron electrical steel, also produced by cold rolling, but with a fundamental difference in its grain structure. The Key Difference Property CRGO CRNO Grain orientation Highly aligned (Goss texture) Random in all directions Magnetic permeability Very high in rolling direction Moderate and uniform in all directions Core loss Very low Higher than CRGO Magnetic properties Strongly directional Isotropic (same in all directions) Primary application Transformer cores Motors, generators, alternators Cost Higher Lower Why Transformers Need CRGO and Motors Need CRNO In a transformer core, the magnetic flux travels in a fixed path — always in the same direction around the core. This is ideal for CRGO, which performs brilliantly in one direction. In a motor or generator, the rotating magnetic field means the flux changes direction continuously as the rotor spins. CRGO would be at a disadvantage here because its properties are so directional — it would perform excellently in one orientation and poorly in the perpendicular direction. CRNO's isotropic (direction-independent) properties are better suited to this rotating-field application. This fundamental difference means the two materials serve different but complementary roles in the electrical ecosystem — CRGO for the static power conversion in transformers, CRNO for the rotating machines that generate and use power. 10. Hi-B CRGO — The Advanced Grade Beyond the standard M3–M6 grades, there is a higher performance class of CRGO known as Hi-B (High Permeability) grain-oriented electrical steel. What Makes Hi-B Different Hi-B steels achieve an even higher degree of grain orientation than conventional CRGO — approaching near-perfect Goss texture alignment. This is accomplished through: Tighter process controls during secondary recrystallisation In some products, laser scribing or mechanical scribing of the steel surface, which breaks up magnetic domain structures and reduces core loss without changing the grain orientation (domain-refined Hi-B) Hi-B Performance Hi-B grades are typically specified at 1.7 Tesla flux density rather than 1.5 Tesla used for conventional CRGO grades — reflecting their higher magnetic saturation capability. Popular Hi-B grades used in India include: 23ZDMH85 / 23ZDMH90 (0.23 mm) 27ZDMH90 / 27ZDMH95 (0.27 mm) 23ZH90 / 23ZH95 (0.23 mm Hi-B) 27ZH95 / 27M-OH (0.27 mm Hi-B) Domain-refined CRGO can achieve up to 15% lower core loss than equivalent conventional CRGO grades, and up to 30% lower core loss than standard grain-oriented steel in some comparisons. When India Needs Hi-B India's Bureau of Energy Efficiency star rating mandate for distribution transformers — particularly the push toward 4-star and 5-star rated transformers — is driving increased demand for Hi-B grades. The BEE's upgraded efficiency requirements from January 2025 onward mean that transformer manufacturers who were previously specifying M5 or M6 are being pushed toward M4 and Hi-B materials to meet the new loss benchmarks. 11. CRGO Material Properties — Technical Specifications For engineers, procurement professionals, and quality teams, the following technical parameters define CRGO material quality: Physical Properties Property Value Steel Density 7.65 g/cm³ Silicon Content ~3.10–3.25% Electrical Resistivity ~48 µΩ·cm Carbon Content (after decarburisation) ≤ 0.005% Mechanical Properties Property Value Ultimate Tensile Strength (parallel to rolling) ~32.6 kg/mm² Ultimate Tensile Strength (perpendicular to rolling) ~38.2 kg/mm² Yield Strength Lower in rolling direction (by design) Thickness and Tolerances (per JIS C 2553 / JIS C 3553) Standard commercial thicknesses: 0.20 mm (0.0079 in.) — specialty applications 0.23 mm (0.0091 in.) — M3 grade 0.27 mm (0.0106 in.) — M4 grade 0.30 mm (0.0118 in.) — M5 grade 0.35 mm (0.0138 in.) — M6 grade Thickness tolerances are extremely tight — typically ±0.02 mm or better — because thickness directly affects both eddy current losses and the stacking factor calculations used in core design. Magnetic Properties Transformer manufacturers and core designers require the following magnetic data from CRGO suppliers: Core loss (W/kg) at specified flux densities (1.5 T for conventional, 1.7 T for Hi-B) and 50 Hz Magnetic induction (B800 or B2500) — the flux density achieved at specified magnetising force (H) Exciting current (VA/kg) — the reactive power required to magnetise the core These values are provided as guaranteed maximum values by the mill for each grade and thickness, and independently verified by reputable suppliers. Mills also provide curves of core loss and AC magnetisation at various flux densities — essential for transformer designers. Standards Reference CRGO is covered by major international standards: JIS C 2553 (Japan) — the most widely referenced in India ASTM A876 (USA) IEC 60404-8-7 (International) DIN EN 10107 (Germany/Europe) IS 3024 (India — BIS standard for CRGO) The Quality Control Order (QCO) implemented by BIS in 2020 mandates that all CRGO used in India must comply with IS 3024 and carry BIS certification — applicable to both domestic production and imports. 12. CRGO and India's Power Sector — The Real Picture India's transformer market is one of the most dynamic in the world. As of 2024, the Indian transformer market was valued at approximately $5.1 billion, on a steep growth trajectory driven by: India's 500 GW renewable energy target by 2030 — requiring massive new transmission and distribution infrastructure Grid expansion and modernisation — particularly at the 220 kV and 765 kV levels The PM Surya Ghar and rural electrification programmes Data centre construction — India is attracting data centre investment at scale, each requiring dedicated power infrastructure Industrial expansion — manufacturing, logistics, and urban infrastructure growth India added an impressive 86,433 MVA of transformation capacity in 2024–25 — 22.2% higher than the previous year. As of March 2025, the AC transformation capacity at 220 kV and above stood at approximately 1,304 GVA, growing at a CAGR of approximately 5.82% since 2018–19. Every megavolt-ampere of that transformation capacity runs through a transformer. Every transformer requires a CRGO core. The connection between India's energy ambitions and the CRGO supply chain is not incidental — it is structural and inescapable. 13. India's CRGO Import Dependency — The Strategic Problem The Supply Gap in Numbers India is one of the world's largest consumers of CRGO steel. The numbers reveal a structural vulnerability that the industry cannot ignore: FY2024 total CRGO demand: approximately 400,000 tonnes Domestic production: approximately 50,000 tonnes (~12.5% of demand) Imports: approximately 239,200 tonnes (from China, Japan, Russia, South Korea) Available for local use: approximately 277,800 tonnes (after exports) Shortfall: approximately 122,200 tonnes — a 30.6% deficit India's domestic production currently meets only 10–12% of its own CRGO demand. The remaining 88–90% is imported. Where India Imports CRGO From The major origin countries for India's CRGO imports are: Japan — the historically dominant supplier, home to Nippon Steel and JFE Steel, producers of some of the world's finest CRGO grades South Korea — POSCO is a major global CRGO producer China — increasingly significant, with Chinese capacity expanding rapidly. China's CRGO exports surged from 494,800 mt in 2023 to 666,300 mt in 2024, a 34.7% year-on-year increase. India is one of China's primary export destinations. Russia — an emerging source, gaining ground particularly as Russian CRGO is priced competitively and not subject to the same duty complications as some other origins in certain markets The BIS Certification Bottleneck All CRGO imported into India must be certified by the Bureau of Indian Standards (BIS) under the Quality Control Order (QCO) mandated in 2020. The QCO was implemented with good intent — to ensure quality standards — but its implementation has created a significant supply bottleneck. Delayed license renewals by BIS for foreign suppliers from Japan, South Korea, and China have created periods of import uncertainty that sent prices spiking and constrained supply precisely when India's transformer manufacturing demand was growing. The GTRI (Global Trade Research Initiative) report from 2024 specifically called out this bottleneck as an immediate cause of the CRGO shortage. The Domestic Production Gap India has approximately one primary domestic CRGO producer at scale, and the JSW Steel expansion into CRGO production represents a significant planned increase in domestic capacity. However, building a CRGO production facility capable of manufacturing 100,000 tonnes per year requires an investment of approximately USD 400–600 million — and the technology involves some of the most complex metallurgical processes in the steel industry. The lead times involved in building capacity, qualifying product grades with transformer manufacturers, and achieving consistent production quality mean that domestic supply relief is a medium-to-long-term solution, not an immediate one. India's CRGO demand is projected to grow at 10–12% annually through 2030. Without significant expansion in both domestic production and import streamlining, the supply gap will widen. Why This Matters Beyond Economics CRGO is now recognised as a strategic material for India's energy transition. Without adequate CRGO supply: Transformer manufacturing timelines extend Transformer prices rise — affecting DISCOM procurement budgets India's ability to meet its 500 GW renewable energy integration target is compromised India's emerging transformer export competitiveness is undermined The CRGO supply chain is not a commodity logistics problem. It is a national energy security question. 14. BEE Star Rating and CRGO — What Changed in 2025 India's Bureau of Energy Efficiency introduced a star rating programme for distribution transformers — similar to the star ratings that exist for appliances like air conditioners and refrigerators. Transformers are classified on a 1-star to 5-star scale, with 5-star being the most efficient. From January 1, 2025, the BEE mandated an upgrade to the star rating requirements — effectively raising the efficiency bar for all distribution transformers sold in India. Transformers that previously qualified for a 3-star rating under old norms now need to achieve what was previously a 4-star standard. The CRGO Implication The star rating is determined primarily by no-load losses (core losses) and load losses at 50% and 100% of full load. To achieve higher star ratings, manufacturers must reduce core losses. The most direct and impactful way to reduce core losses is to use higher-grade CRGO — moving from M5 to M4, or from M4 to M3 or Hi-B grades. The BEE mandate has therefore created a structural shift in CRGO demand toward higher grades (M3, M4, Hi-B) and away from M5 and M6. This grade shift is important for procurement teams to understand: not only is total CRGO demand growing, but the mix is shifting toward more expensive, higher-performance grades. The implications for pricing, availability, and supplier qualification are significant. Transformers are tested and classified based on: No-load loss (Watts) — directly linked to CRGO core quality and grade Load loss (Watts) at 50% and 100% load — linked to winding design and conductor choice Total loss at each load point — the sum determines the star rating 15. Where CRGO Is Used Beyond Transformers While transformers are by far the largest application for CRGO core material, it is also used in several other applications where static, directional magnetic flux and low core loss are required: Power and Distribution Transformers The primary application. Covers: Distribution transformers (25 kVA to 2,500 kVA) — the most numerous transformers in India's grid Power transformers (above 5 MVA) — used at substations for stepping voltage up and down in the transmission network Extra-high-voltage transformers (220 kV, 400 kV, 765 kV) — the backbone of India's interstate grid Instrument Transformers Current transformers (CTs) and potential transformers (PTs) used for metering and protection use CRGO cores, often in wound or toroidal configurations. Shunt Reactors Large shunt reactors used in high-voltage transmission lines for reactive power compensation use CRGO cores. Static Reactors and Inductors Industrial inductors and reactors in power quality equipment, static VAR compensators, and similar applications. Large Generators The stators of very large generators sometimes use grain-oriented steel in specific configurations to take advantage of CRGO's directional properties in the regions where flux flow is predominantly unidirectional. 16. Buying CRGO in India — What to Know Forms Available in the Indian Market CRGO is traded in India in several forms, each serving different buyers in the supply chain: Mother Coils (Primary Coils) Large coils as received from the mill — typically 900–1,100 mm wide, several tonnes per coil. Purchased by slitting facilities and large transformer manufacturers with in-house processing capability. CRGO Slit Coils Mother coils slit to narrower widths specified by the buyer's core design. The most common form in which transformer manufacturers and core cutting facilities purchase CRGO. Width tolerances and edge quality are critical parameters. CRGO Secondary Sheets Sheets from off-specification or secondary-grade material — either from production overruns, edge trim, or material that does not meet prime specifications. Used by cost-conscious buyers for less critical applications. The secondary market is a significant part of India's CRGO trading ecosystem, providing cost-effective material for specific applications. CRGO Scrap Scrap CRGO arising from lamination cutting, punching, and slitting operations. Traded separately and used in specific recycling and secondary steel applications. What to Evaluate When Sourcing CRGO For transformer manufacturers and core cutting facilities, the following parameters matter in procurement: Grade and thickness — confirmed by mill test certificates Mill of origin — Japanese, Korean, or domestic origin materials each have established performance track records in the Indian market BIS certification status — essential for compliance with the QCO Slitting quality — width tolerance, edge burr, and surface condition Coil weight and ID/OD dimensions — must suit the buyer's processing equipment Core loss and magnetic induction values — from mill test certificates, not just grade labels Supplier inventory position — availability and lead time, particularly important during supply-tight periods The Importance of a Knowledgeable Supply Partner Given the complexity of CRGO procurement — grade selection, origin qualification, BIS compliance, price cycle navigation, and quality verification — the choice of supply partner is not simply a price decision. A supplier who understands the market, maintains reliable inventory across grades, and provides accurate material documentation is a supply chain asset, not merely a vendor. For transformer manufacturers, procurement teams, and core cutting facilities across India, SM Steels operates as a specialist CRGO core material supplier in India, with deep market knowledge and a consistent inventory position across grades and forms. 17. Frequently Asked Questions Q: What does CRGO stand for? A: CRGO stands for Cold Rolled Grain Oriented. It refers to a type of electrical steel — a silicon-iron alloy — whose internal grain structure has been precisely aligned through a controlled manufacturing process to optimise magnetic properties in the rolling direction. Q: What is CRGO used for? A: CRGO is used primarily as the core material in electrical transformers — both distribution transformers and power transformers. It is also used in instrument transformers, shunt reactors, and certain large generators. In every application, its role is to provide a low-loss magnetic path for alternating magnetic flux. Q: Why is CRGO used in transformers specifically? A: Transformers require a core material with high magnetic permeability (to carry flux efficiently), low core loss (to minimise energy waste as heat), and durability over decades of continuous operation. CRGO's aligned grain structure gives it the highest magnetic permeability in the rolling direction of any commercially available steel, combined with low hysteresis and eddy current losses due to its grain orientation and silicon content. Q: What is the difference between CRGO and CRNO? A: CRGO (Cold Rolled Grain Oriented) has grains aligned in one direction — ideal for transformer cores where flux flows in a fixed path. CRNO (Cold Rolled Non-Oriented) has randomly oriented grains — better suited for motors and generators where the magnetic field rotates. CRGO has lower core loss and higher permeability in the rolling direction; CRNO has more uniform (but generally lower) properties in all directions. Q: What are M3, M4, M5, M6 grades of CRGO? A: These are the standard commercial grades of CRGO, differing in thickness and core loss level. M3 (0.23 mm) is the thinnest and most efficient; M6 (0.35 mm) is the thickest and most economical. Lower grade number = thinner steel = lower core loss = higher efficiency = higher cost. Q: What is a CRGO lamination? A: A CRGO lamination is a thin, individually insulated sheet of CRGO steel, cut to a specific geometry and stacked with other laminations to form a transformer core. The thin lamination (0.23–0.35 mm) and the insulation between sheets reduce eddy current losses by confining induced currents to a small cross-section. Q: What is Hi-B CRGO? A: Hi-B (High Permeability) CRGO is an advanced grade of grain-oriented electrical steel with an even higher degree of grain alignment than conventional CRGO. It achieves lower core losses and can operate at higher flux densities (1.7 Tesla vs 1.5 Tesla for conventional grades). Domain-refined Hi-B — treated by laser scribing — can achieve up to 15–30% lower core loss than conventional grades. Q: How much CRGO does India import? A: In FY2024, India imported approximately 239,200 tonnes of CRGO, with domestic production of approximately 50,000 tonnes — meeting only about 10–12% of total demand of approximately 400,000 tonnes. This represents a strategic import dependency from Japan, South Korea, China, and Russia. Q: What is the Goss texture in CRGO? A: The Goss texture, denoted {110}<001> in crystallographic notation, is the specific grain orientation achieved in CRGO steel through controlled cold rolling and secondary recrystallisation annealing. It was discovered by Norman P. Goss in 1934. In this orientation, the crystal's easy axis of magnetisation (the <001> direction) is aligned with the rolling direction, giving CRGO its exceptional magnetic properties in that direction. Q: What is the silicon content of CRGO? A: CRGO contains approximately 3.0–3.25% silicon by weight. Silicon is critical because it increases the electrical resistivity of the steel from ~10 µΩ·cm (pure iron) to ~48 µΩ·cm, directly reducing eddy current losses. Higher silicon content would improve resistivity further but makes the steel too brittle for cold rolling. Q: Does CRGO core quality affect transformer efficiency? A: Directly and significantly. The grade of CRGO core material determines the no-load (core) losses of the transformer — losses that occur every second the transformer is energised, regardless of load. A transformer with M4-grade CRGO will have measurably lower core losses than the same design with M6 CRGO, saving energy continuously over its 25–30 year operational life. India's BEE star rating system for distribution transformers directly evaluates and classifies transformers based on these losses. Conclusion CRGO — Cold Rolled Grain Oriented steel — is not simply a raw material. It is the precision-engineered foundation upon which India's entire transformer manufacturing industry, and by extension its power distribution infrastructure, is built. From the Goss texture discovered in 1934 to the 400,000 tonnes India needs annually to keep its grids energised, the story of CRGO is the story of electrical civilisation at industrial scale. Understanding what CRGO is, how it works, why its grades matter, and why India's supply chain for it is strategically vulnerable is not merely technical knowledge. It is essential intelligence for anyone operating in the transformer manufacturing ecosystem, the electrical infrastructure supply chain, or India's energy sector. The CRGO core is where electricity becomes power. And in India's energy story, it is where ambition meets material reality. About SM Steels — CRGO Core Material Supplier in India S M Steels is a Chennai-based specialist trader and supplier of CRGO core material, operating at the centre of India's electrical steel supply chain. With deep market knowledge across grades, origins, and forms — from CRGO coils and secondary sheets to CRGO scrap — S M Steels serves transformer manufacturers, core cutting facilities, and procurement teams across India. For sourcing support, grade availability, or market intelligence on CRGO procurement, connect with S M Steels — India's trusted CRGO core material supplier. 📍 S M Steels, Chennai 🌐 www.smsteels.org 📞 Contact Us We don't just supply CRGO. We understand it.

There is a meeting that happens in every transformer manufacturing facility, usually once a quarter. The procurement head walks in with a price comparison sheet. Import landed cost versus domestic options versus secondary market. The CFO asks why CRGO core material is more expensive than last quarter. The procurement head explains there was a price movement. The CFO asks when it will come down. Nobody in that room has a satisfying answer. That meeting happens because manufacturers see CRGO prices as an outcome. Traders see them as a process. And that difference — between observing a number and understanding the system that produced it — is worth more than any price list, any spot quote, or any supplier promise. This is what the inside of that system actually looks like. The Big Picture: A Market That Looks Simple From the Outside To a manufacturer, the CRGO procurement decision appears straightforward. Check the landed import cost from Japan or Korea. Compare against domestic availability. Factor in lead time. Place the order. What this view misses is everything that happened before that price was quoted to them. India's CRGO market is not a commodity exchange with transparent pricing. It is a layered, relationship-driven, sentiment-sensitive market where the price a manufacturer receives is the end result of a chain of decisions, positions, and pressures that started weeks or months earlier — in shipping contracts, in currency movements, in mill order books in Chiba or Pohang, and in the inventory positions of a handful of traders who are reading all of it simultaneously. India imports the overwhelming majority of its CRGO requirements. The domestic production base, while growing, has not yet reached the scale or grade breadth to materially shift this dependency. Which means the price cycle in India is largely imported — but it is not imported cleanly. It arrives filtered through freight markets, currency exposure, trader positioning, and buyer behaviour patterns that create a local price dynamic entirely distinct from the mill price at origin. Understanding that filter is the entire game. The Hidden Problem: Prices Don't Move the Way Manufacturers Think They Do The most common misconception in transformer manufacturing procurement is that CRGO prices follow a rational, observable cycle. That when global steel prices fall, CRGO will follow. That when the rupee strengthens, landed costs will ease. That when demand is soft, suppliers will discount. Each of these is partially true. None of them is reliably actionable — because the relationship between these inputs and the final price is not linear. It is mediated by trader behaviour, and trader behaviour is driven by something manufacturers rarely account for: inventory psychology. Here is how the cycle actually moves. The CRGO Price Cycle — As a Trader Reads It Phase One: The Accumulation Phase Mill prices at origin — Japan, South Korea, occasionally China — begin to firm. The signals are subtle at first. Lead times from mills extend slightly. Allocation volumes tighten. Traders who track mill order books closely begin to sense that the next pricing round will move upward. At this stage, manufacturers are typically unaware. Their procurement teams are working off last quarter's landed cost benchmarks. They are not seeing what the trader is seeing: that the replacement cost of the next shipment will be meaningfully higher than the current market price. Traders who read this early begin accumulating inventory — not aggressively, but steadily. They are not speculating. They are positioning. Phase Two: The Price Signal Arrives Mill price revisions are announced. Freight costs — which have their own cycle, driven by container availability and shipping route dynamics — may compound the increase. The landed cost calculation for new imports shifts upward, sometimes sharply. This is the moment manufacturers first feel the market has moved. From their vantage point, it appears sudden. From the trader's vantage point, it was visible three to six weeks earlier. The gap between those two perspectives is where procurement decisions get expensive. Phase Three: The Hesitation Cycle As prices rise, a predictable pattern emerges on the buyer side. Manufacturers who need material face a choice: buy at the new price level or wait for a correction. Those with thin order books or uncertain delivery timelines choose to wait. This hesitation, in aggregate, temporarily suppresses demand — which can create a misleading signal. Prices plateau or soften slightly at the trader level as offtake slows. Manufacturers interpret this as the beginning of a correction. Some hold out further. Meanwhile, traders are watching their inventory carrying costs accumulate and recalibrating their floor price accordingly. The apparent softening is not a correction. It is a pause before the next leg — driven by the reality that the import pipeline is not getting cheaper, it is just getting delayed. Phase Four: The Compression Event Then an order drops. A large DISCOM tender gets confirmed. A transformer manufacturer with a committed delivery deadline cannot wait any longer. They enter the market with urgency — and the price dynamic shifts immediately. Traders who were sitting on inventory suddenly have leverage. The hesitation that suppressed demand evaporates. Buyers who waited find that the correction they were banking on has been replaced by an availability squeeze. Market participants report that this compression phase — when it arrives — can move transaction prices sharply within a matter of weeks, catching procurement teams who were in wait-and-watch mode entirely off-guard. This is the cycle. And it repeats — with variation, but with recognisable structure — across every major price movement in India's CRGO core material market. CRGO Core Connection: Why the Core Is Always at the Centre of This Cycle CRGO core is not a commodity that manufacturers can easily substitute, delay indefinitely, or source opportunistically at the last moment. Every transformer has a core. The core specification is locked at the design stage. The grade matters — M4, M5, M6 are not interchangeable across all applications without engineering sign-off. This inelasticity is what makes the price cycle in CRGO particularly consequential. Manufacturers cannot simply switch materials when prices spike. They cannot easily defer procurement beyond a certain point without affecting delivery commitments. Which means that when the compression event arrives, they are price-takers — not negotiators. The trader who holds CRGO coils in inventory at that moment is not exploiting the manufacturer. They are being compensated for the risk they absorbed during the accumulation phase, when they were buying material the manufacturer wasn't yet ready to commit to. That is the fundamental asymmetry of the market. And it will not change until manufacturers begin to engage with the price cycle as a dynamic system — rather than a quarterly line item. Ground-Level Market Reality: What Actually Happens in Negotiations Behind the macro cycle, there are daily realities that shape how CRGO transactions actually close. Procurement teams at transformer manufacturers typically operate with a price anchor — the last transaction price, or the imported landed cost benchmark from the previous month. When the market has moved, this anchor creates friction. The buyer believes the trader is inflating margin. The trader knows their replacement cost has shifted. Negotiations stall. In a rising market, this friction costs the manufacturer time — which, depending on their delivery schedule, costs them more than the price difference they were trying to avoid. In a falling market, the dynamic reverses. Traders holding CRGO secondary sheets and coil inventory need to move material before further depreciation. Buyers sense this and delay — sometimes extracting better terms, sometimes waiting too long and finding that the trader has found another buyer or simply held their position. The CRGO scrap market adds another layer. Secondary and scrap pricing often move as a leading indicator of sentiment in the primary market — when scrap demand softens, it signals that transformer manufacturing activity is slowing before the primary procurement numbers reflect it. Traders who watch the scrap market are reading a real-time signal that most manufacturer procurement teams don't have visibility into. What's Being Done vs. What's Still Missing Some larger transformer manufacturers have begun building strategic inventory buffers — moving away from just-in-time CRGO procurement toward a model that gives them more price cycle insulation. This is a step in the right direction, but it requires working capital discipline that not every manufacturer can sustain. On the supply side, the gradual development of domestic CRGO production adds a new variable to the cycle — but also new complexity. Domestic pricing does not always move in lockstep with import costs, creating moments of divergence that sophisticated buyers can navigate — and unsophisticated buyers can misread. What is still missing is any structured mechanism for price transparency in India's CRGO market. There is no published index, no exchange-traded reference, no independently verified landed cost benchmark that both buyers and sellers can anchor to. Every transaction is a bilateral negotiation — which is why the information asymmetry between trader and manufacturer persists, and why it will continue to drive outcomes until that changes. Forward Outlook: The Cycle Is Coiling Again As of early 2025, the CRGO market is in what experienced traders would characterise as a late hesitation phase. Inventory exists in the system. Buyers are present but uncommitted. Price levels have been relatively stable — which is creating a false sense that the market is in equilibrium. It is not in equilibrium. It is in accumulation. The demand triggers are visible: DISCOM ordering pipelines are building, renewable energy transformer requirements are not going away, and data centre infrastructure demand is beginning to translate into actual procurement activity. When those triggers activate simultaneously — and industry estimates suggest the window is narrowing — the compression event will arrive faster than most procurement teams are currently planning for. The manufacturers who understand the cycle will be positioned. The ones who are waiting for the price to drop a little further will be the ones calling traders urgently, on timelines that have already shifted the negotiating leverage. Conclusion The price of CRGO core is not a number that appears from nowhere. It is the output of a system — a cycle of mill signals, trader positioning, buyer hesitation, and demand compression that runs continuously, mostly out of sight of the people most affected by it. Manufacturers who treat CRGO procurement as a reactive exercise will always be buying at the wrong point in the cycle. Not because traders are withholding information — but because they are not looking at the same market. The view from inside the supply chain looks very different from the view across a procurement table. And in this market, the difference between those two views is measured in margin. For CRGO Supply Pan India Contact S M STEELS at +91 89394 61720 Mukesh Sekar, Chennai, Tamil Nadu, India. This is the market SM Steels operates in. Every day. We track mill pricing from Japan and Korea. We watch freight cycles. We read the secondary market as a leading indicator. And we supply CRGO core material, CRGO coils, secondary sheets, and CRGO scrap to transformer manufacturers who want a supplier that understands the cycle — not just the catalogue. If you want to talk market positioning, procurement timing, or simply understand where prices are heading — we're the conversation worth having. 📍 SM Steels 🌐 www.smsteels.org 📞 Contact Us We don't just move CRGO. We understand what moves it.

There was a broad consensus heading into late 2025: the CRGO market would correct, absorb the shock, and stabilise by Q4. Traders were holding inventory with that expectation. Procurement teams had pencilled in budget revisions. Even cautious buyers were signalling intent to re-enter the market by December. That recovery didn't arrive. And what's more telling than the delay itself is the silence around it. Nobody in the supply chain wants to publicly admit that the fundamentals they were betting on — falling import prices, rising transformer demand, policy-backed procurement — haven't aligned the way the market needed them to. This isn't a temporary blip. It is a structural misread. And it deserves to be examined without the usual optimism that tends to accompany industry commentary on India's power infrastructure story. The Big Picture That Sets the Stage India's power sector narrative remains compelling on paper. The country is in the middle of an unprecedented infrastructure push — transmission line expansions, renewable energy integration targets, data centre corridors, and urban grid upgrades are all running simultaneously. The government's own projections have pointed to transformer demand growing significantly through 2026 and beyond. All of that is real. The demand pipeline exists. But demand pipelines and procurement realities are two very different things. And the gap between them is exactly where the CRGO core market is currently stuck. Transformer manufacturers — the primary consumers of CRGO core material — have not been placing orders at the volumes the market anticipated. Utility procurement, particularly from state DISCOMs, has remained patchy. And the financing cycles that drive large transformer orders have been slower to move than the headline investment numbers suggest. The Hidden Problem: A Multi-Layered Stall The surface explanation for the sluggish recovery is pricing. Import prices from Japan, South Korea, and increasingly from other origins have not softened to the degree buyers were hoping for. The expectation was that a global demand cooldown would translate into more competitive landed costs in India. That has only partially materialised. But pricing is only one layer. Beneath it, there are at least three structural issues that are quietly keeping the market from finding its footing: One — Inventory Overhang That Won't Clear When prices were rising sharply, a section of traders and mid-tier transformer manufacturers built inventory positions based on forward demand assumptions. Those assumptions have not been validated at the pace required. The result is that secondary market activity has slowed considerably. Buyers who might otherwise have picked up spot material are holding back, knowing that distressed inventory is sitting in the system and may come at a discount if they wait. Market participants report that secondary sheet movement in particular has been sluggish, with some traders absorbing carrying costs well beyond what they had planned for. Two — DISCOM Procurement Has Not Delivered The transformer demand thesis was heavily anchored on state utility ordering. Large distribution and transmission transformer tenders were expected to flow through in volume by mid-to-late 2025. Some did. Many didn't — or were delayed, revised, or broken into smaller tranches that reduced the immediate pull on CRGO core material. When DISCOM orders move slowly, the entire upstream chain feels it. Transformer manufacturers don't commit to raw material procurement without confirmed order books. And without that commitment, CRGO traders have no cover to move their positions. Three — Domestic Supply Has Added Complexity, Not Relief There has been much discussion about JSW Steel's expansion into CRGO production and what it means for India's import dependency. In principle, a domestic source of CRGO should add stability to the market. In practice, the transition period has introduced its own complexity. Buyers are navigating questions around grade availability, consistency, and pricing parity with imported material. Some transformer manufacturers have been cautious about switching specifications mid-cycle. The domestic supply option has not yet become the market anchor it was expected to be — and in the interim, it has contributed to a wait-and-watch posture rather than active procurement. The CRGO Core Connection: Where It All Converges CRGO core material sits at the centre of this entire chain. Every transformer built — whether it's a 25 kVA distribution unit or a 100 MVA power transformer — requires a precision-engineered CRGO core. There is no substitution. There is no workaround. Which is precisely why the market's stall is so significant. When procurement slows at the transformer manufacturer level, CRGO coils stop moving. When coils stop moving, secondary sheet markets soften. When secondary markets soften, CRGO secondary sheets pile up in trader inventory. And when inventory builds without a clear offtake horizon, pricing signals become distorted — neither reflecting true replacement cost nor offering the discount deep enough to trigger aggressive buying. The CRGO core market is, in effect, caught between a real demand story that exists in policy documents and a procurement reality that is moving far slower than those documents imply. Ground-Level Market Reality: What Traders Are Actually Experiencing This is where the industry commentary often falls short — at the level of what is actually happening in daily trade. Reports from market participants paint a consistent picture: Buyers are not absent. They are present, negotiating, and then stepping back. The intent exists, but the conviction to commit at current price levels does not. Procurement teams at mid-sized transformer manufacturers are operating with tighter working capital than a year ago. Even where order books exist, financing constraints are causing delays in raw material sourcing. The spot market for CRGO scrap and secondary material has seen inconsistent pricing — some weeks showing marginal recovery, followed by softening — without establishing any directional trend that would give traders confidence to reposition. Several traders who were expecting a Q4 2025 recovery have extended their holding horizon into Q1 2026, absorbing interest costs and watching margins compress. Imported material pricing has remained sticky on the downside. Suppliers in origin countries have shown little urgency to aggressively discount, partly because their own order books from other geographies have provided some cushion. None of this is catastrophic. But it is the quiet erosion that doesn't show up in press releases or sector reports — and it is shaping real business decisions right now. What's Being Done vs. What's Still Missing On the positive side, there are genuine structural tailwinds that will eventually matter: The PM Surya Ghar scheme and broader solarisation of the distribution network will drive transformer demand, including at the distribution level. Data centre investment — which India is attracting at scale — requires power infrastructure that runs through transformers and therefore through CRGO core. The government's stated intent to reduce import dependency in critical electrical components remains a policy priority, even if execution is uneven. What's missing, however, is the connective tissue between these macro drivers and ground-level procurement: DISCOM financial health remains uneven across states. Without creditworthy utility buyers, transformer manufacturers cannot confidently build order books. There is no effective price discovery mechanism for CRGO core in the Indian market. Prices are largely determined by import cost, trader margin, and negotiation — without the transparency that would help buyers and sellers find equilibrium faster. The domestic production narrative needs more clarity. Market participants need clearer signals on availability, grade mix, and pricing from domestic sources before they can restructure their procurement strategies accordingly. Forward Outlook: Waiting for the Trigger The CRGO core market will recover. That is not in question. The demand fundamentals for transformers in India over the next decade are structurally sound. The question is what triggers the next active procurement cycle — and when. The most likely catalyst is a concentrated burst of DISCOM ordering, potentially driven by state elections creating political urgency around rural electrification and grid reliability. When that happens, it tends to compress lead times rapidly and push transformer manufacturers into the market for raw materials simultaneously. When that moment arrives, traders carrying inventory will see a sharp reversal. Those who stepped out of the market during the stall will face price and availability pressure. Industry estimates suggest that a demand recovery of even moderate intensity could absorb the current inventory overhang within two to three quarters, potentially tightening the market faster than most current forecasts anticipate. The risk is in waiting too long to reposition — and finding the market has moved before the procurement decision has been made. Conclusion The CRGO market's delayed recovery isn't a mystery. It's the predictable outcome of a demand story built on policy intent colliding with procurement systems that move slowly, inconsistently, and under financial pressure. The traders and manufacturers who navigate this period well will not be those who waited for certainty. They will be those who understood the structure of the stall — and positioned accordingly. The recovery isn't missing. It's just not moving on anyone's schedule but its own. Looking to navigate the CRGO market with better intelligence? SM Steels has been operating at the centre of India's CRGO supply chain for years — tracking price movements, managing inventory cycles, and supplying transformer manufacturers across the country with CRGO core material, CRGO coils and secondary sheets. If you're a transformer manufacturer, trader, or procurement professional trying to make sense of where the market is heading — or looking for a reliable supply partner who understands the ground reality — we're worth a conversation. 📍 S M Steels 🌐 www.smsteels.org 📞+91 89394 61720 We don't just supply CRGO. We track it, analyse it, and move with the market — so our customers don't have to guess.

India’s transformer industry is entering a phase few anticipated — not because of a collapse in demand, but because of a sudden cost shock in one of its most overlooked components: transformer oil. Reports across the market suggest price increases approaching 30–40% in recent months. The numbers may vary across suppliers and grades, but the direction is unambiguous. Costs have surged. And the impact is now rippling through the entire electrical supply chain — including the CRGO core market. At first glance, transformer oil accounts for only a fraction of a transformer’s total cost. But in practice, it is a non-negotiable input. Without it, transformers cannot be commissioned, dispatched, or installed. And when its price rises sharply and unpredictably, manufacturers are forced into a position they typically avoid: hesitation. That hesitation is now visible. Across multiple manufacturing clusters, transformer producers are slowing down dispatch commitments, renegotiating quotations, or delaying fresh supply agreements altogether. The issue is not demand — order books remain intact, supported by ongoing grid expansion, renewable integration, and infrastructure growth. The issue is pricing certainty. Manufacturers who committed to supply at older cost structures are now exposed to margin compression, and many are choosing to pause rather than absorb losses. This is where the impact becomes structural. Because behind every transformer sits a CRGO core — the magnetic backbone that defines its efficiency, losses, and performance. And when transformer production slows, CRGO consumption does not decline gradually; it stalls abruptly. A Chain Reaction Few Track Closely The slowdown is not isolated to finished transformers. It is now visible upstream: CRGO core material movement is weakening Prime coil demand is softening Secondary oil sheet markets are slowing significantly Stock holding periods are increasing across traders This is not a demand destruction cycle. It is a temporary demand deferral , driven by cost uncertainty. Transformer manufacturers are not cancelling orders. They are delaying execution. That distinction matters. Because CRGO, unlike many commodities, operates on tight procurement cycles. Buyers typically align purchases closely with production schedules. When those schedules shift, even by a few weeks, the entire flow of material — from imported coils to processed laminations — begins to accumulate friction. The Oil Factor: Why It Matters More Than It Should Transformer oil is often treated as a secondary cost element. But in periods of volatility, it becomes a gating factor. A 30–40% increase in oil prices does three things simultaneously: Disrupts cost calculations for ongoing orders Creates hesitation in new quotations Introduces risk in inventory holding Unlike CRGO, which can be stocked and traded with some flexibility, transformer oil is typically procured closer to production or dispatch. This makes it highly sensitive to short-term price fluctuations. For manufacturers operating on thin margins or fixed contracts, absorbing such a spike is not viable. Passing it on immediately is also difficult, especially in government or tender-based projects. The result is a pause. Why the CRGO Core Market Feels It Immediately The CRGO core sits upstream but is directly tied to transformer production velocity. When production slows: Core cutting reduces Material bookings decline Secondary markets lose liquidity The secondary CRGO oil sheet segment, in particular, is highly sensitive to manufacturing cycles. These materials are often used by smaller fabricators and price-sensitive buyers. When larger manufacturers slow down, smaller players become cautious as well, further reducing market activity. This creates a layered slowdown: Tier-1 manufacturers pause due to cost risk Tier-2 and Tier-3 players delay purchases due to uncertainty Traders hold inventory longer, waiting for clarity A Market Waiting, Not Falling It is important to frame this correctly. This is not a structural decline in the CRGO core market. India’s long-term demand drivers remain intact: Transmission and distribution expansion Renewable energy integration Data centre growth Industrial electrification If anything, demand visibility over the next 3–5 years is stronger than ever. But short-term execution cycles are now being dictated by cost volatility rather than demand visibility . And that creates a temporary imbalance. What Happens Next Markets like these do not stay frozen for long. One of three adjustments typically resolves the situation: Price pass-through stabilizes Manufacturers revise quotations and absorb partial cost increases Oil prices correct or stabilize Reducing uncertainty in procurement Project timelines adjust Allowing cost recalibration across contracts Once that happens, the release is often sharp. Delayed transformer production translates into pent-up CRGO core demand , which can lead to sudden spikes in material movement, pricing corrections, and faster inventory turnover. The Real Insight: CRGO Core Is Still the Pulse What this episode reveals is not weakness — but sensitivity. The CRGO core market is not just driven by demand; it is driven by execution timing . Even a single input cost shock — in this case, transformer oil — can ripple across: Manufacturing decisions Procurement cycles Material movement And temporarily bring momentum to a halt. For those closely tracking the market, this is not a slowdown to fear — but a signal to understand. Because when movement resumes, it rarely does so gradually. Conclusion India’s transformer and electrical infrastructure story remains firmly on a growth trajectory. But growth is not linear. It moves in phases — expansion, friction, adjustment, and release. The current slowdown in the CRGO core market is a reflection of that friction phase. Not a lack of demand. But a pause in execution. And in markets like these, pauses often precede acceleration.

The term CRGO core is widely used across India’s transformer industry, yet its practical meaning is often misunderstood in procurement discussions. For transformer manufacturers, core cutting units, and electrical equipment companies, CRGO core material is not just a raw input — it directly defines transformer efficiency, material utilization, and production workflow. This article explains what CRGO core material actually means in real-world manufacturing, how it is supplied, and what buyers should evaluate before sourcing. For direct sourcing and specifications, refer to CRGO core material supplier in India 1. What “CRGO Core” Means in Practical Terms CRGO core refers to transformer core material made from grain-oriented electrical steel , specifically processed to guide magnetic flux efficiently along the rolling direction. In practical manufacturing terms, this means: Lower no-load losses Improved transformer efficiency Stable magnetic performance Long operational life CRGO core is not a single product — it is a category that includes: CRGO lamination sheets Slit coils Pre-cut laminations (mitered, V-notch, etc.) Core assembly-ready materials Each format serves a different stage of transformer core manufacturing. 2. Why CRGO Core Material Is Critical for Transformers Transformer performance depends heavily on core material. CRGO core sheets are used because they: Reduce hysteresis loss Minimize eddy current loss Improve magnetic flux flow Enable efficient energy transfer This is why CRGO core material is used in: Distribution transformers Power transformers Industrial electrical equipment Even small variations in material selection can influence overall transformer efficiency. 3. Common Forms of CRGO Core Material in India CRGO core material is supplied in multiple formats depending on production requirements. CRGO Lamination Sheets Most widely used format Pre-cut sheets for core assembly Available in mitered and notched forms CRGO Slit Coils Narrow-width coils Used by core cutting units Suitable for large-scale custom cutting Pre-Processed Laminations Mitered laminations V-notch and double V-notch sheets Step-lap configurations These formats help manufacturers choose between processing flexibility and ready-to-use efficiency. 4. Thickness Range and Practical Usage CRGO core sheets are commonly available in: 0.23 mm – widely used for energy-efficient transformer cores 0.27 mm – balanced performance and availability 0.30 mm – used in cost-sensitive applications In the Indian market: 0.23mm is the most demanded and widely circulated thickness 0.27mm is moderately available 0.30mm is used selectively Thickness selection depends on transformer design, efficiency requirement, and availability. 5. Prime vs Secondary CRGO Core Material CRGO core materials are broadly categorized into: Prime CRGO Core Material Uniform surface Consistent properties Preferred for efficiency-driven applications Secondary CRGO Core Material More cost-effective Suitable for general applications Widely used depending on requirement The choice depends on: Application type Budget End-user specification Both play an important role in the Indian CRGO market. 6. Availability Reality: Not Always Standardized One important aspect often overlooked is that CRGO core material availability is not always standardized. Many materials in the market come from: Project surplus Coil processing output Leftover laminations from completed jobs Dimension-specific excess production This is especially true for: CRGO prime lamination sheets Limb materials Right-angle or rectangular sheets For buyers, this means: Procurement should align with available dimensions — not just theoretical specifications. 7. Choosing the Right Format Based on Production Different manufacturers require different formats: Large OEMs → Prefer slit coils for continuous production Core cutting units → Prefer coils and rectangle sheets Medium manufacturers → Prefer ready laminations Job work processors → Prefer surplus prime sheets Selecting the right format improves: Material utilization Production efficiency Cost control 8. The Role of CRGO Core Suppliers in India Because CRGO is an import-dependent and availability-driven market, suppliers play a key role in: Sourcing material across formats Providing real-time availability Matching dimensions with requirements Offering both prime and secondary options A reliable supplier helps bridge the gap between market availability and manufacturing requirement. For sourcing support, explore CRGO core material supplier in India 9. What Buyers Should Focus On Instead of focusing only on price, buyers should evaluate: Format suitability (coil vs sheet vs lamination) Thickness requirement (0.23 / 0.27 / 0.30) Dimensional alignment Surface condition Availability timing CRGO procurement is most effective when aligned with actual production needs rather than ideal specifications. Conclusion CRGO core material is the foundation of transformer performance — but its procurement is not always straightforward. Understanding: Material formats Thickness availability Prime vs secondary options Real market supply conditions helps transformer manufacturers make better sourcing decisions. For procurement of CRGO core material, transformer lamination sheets, and related formats, contact S M Steels, Chennai for current availability and sourcing support.

In CRGO procurement, most discussions revolve around price per kilogram. However, experienced transformer manufacturers understand that material utilization often has a greater impact on overall core cost than the purchase rate itself. Two buyers may procure CRGO at similar prices, yet one achieves lower core cost simply because of better utilization. This difference becomes more visible when working with 0.23mm CRGO prime limb material , which is often available as surplus from project allocations and prime coil processing. When dimensions align with transformer core requirements, 0.23mm prime limb laminations can reduce cutting waste, minimize processing time, and improve effective material usage. 1. The Hidden Cost in CRGO Coil Procurement When purchasing CRGO coils, the usable material is always less than the total weight. Losses typically occur due to: Edge trimming Slitting wastage Length mismatch Notching scrap Handling losses These losses reduce the effective material used in transformer core assembly. In contrast, 0.23mm CRGO prime limb material is already cut into usable limb laminations , reducing the need for extensive coil processing and improving material utilization. 2. Two Buyers, Same Price — Different Core Cost Consider two procurement approaches: Buyer A – CRGO Coil Purchases 0.23mm CRGO coil Performs slitting and cutting Generates trimming scrap Incurs processing time and labor Buyer B – 0.23mm Prime Limb Material Purchases 0.23mm prime limb laminations Uses pre-cut sheets matching limb requirement Reduces cutting operations Minimizes scrap generation Even if both buyers purchase material at a similar price per kg, Buyer B often achieves lower effective core cost due to better utilization and reduced processing loss. This is why utilization-driven procurement is becoming increasingly relevant. 3. What Is 0.23mm CRGO Prime Limb Material 0.23mm CRGO prime limb material refers to: Prime-grade grain-oriented electrical steel Pre-cut limb laminations Rust-free and oil-free sheets Clear grain direction maintained Ready for transformer core assembly These laminations are commonly available as: Jumbo limb material Mitered laminations Diamond cut laminations V-notch and double V-notch sheets Step-lap limb configurations Since they are already processed, they reduce the need for coil cutting. 4. Why 0.23mm Is Most Common Among CRGO thicknesses, 0.23mm prime limb material is the most commonly available in the market. This is because: 0.23mm is widely used in energy-efficient transformer designs Many projects utilize 0.23mm coils Surplus limb laminations are generated during production Coil processing of 0.23mm produces usable leftovers 0.27mm prime limb material is moderately available , depending on project circulation.Thicknesses such as 0.30mm and 0.35mm are relatively rare in prime limb surplus. 5. Improved Material Utilization Using 0.23mm prime limb laminations helps: Reduce trimming losses Minimize scrap generation Improve usable material percentage Avoid narrow strip waste Instead of cutting multiple strips from coils, manufacturers can directly use limb laminations. This significantly improves effective material utilization. 6. Reduced Cutting and Processing Time Since 0.23mm prime limb material is already cut: No slitting required Less notching setup Reduced handling operations Faster core assembly This improves production turnaround, especially for medium-volume manufacturing. 7. Lower Effective Core Cost Even when purchase price per kg is similar, 0.23mm prime limb material reduces: Cutting waste Processing labor Machine time Power consumption This results in lower effective cost per finished transformer core , making it a smart procurement choice when dimensions align. 8. Best Use Cases 0.23mm CRGO prime limb material is particularly suitable for: Transformer manufacturers Core cutting units Job work processors Medium batch production Urgent delivery requirements These segments benefit most from improved utilization. 9. What Buyers Should Check Before procurement, buyers should verify: Limb length compatibility Notch configuration (miter, V-notch, etc.) Grain direction alignment Thickness confirmation (0.23mm) Surface condition (rust-free, oil-free) Dimensional alignment is key to maximizing utilization. Conclusion CRGO procurement is not just about price per kg — it is about maximizing usable material. Two buyers may purchase at the same price, but the one using 0.23mm CRGO prime limb material can achieve better utilization, reduced cutting waste, and lower effective transformer core cost. When dimensions align with transformer design, 0.23mm prime limb laminations offer a practical and efficient alternative to full coil processing. For procurement of 0.23mm CRGO prime limb material, contact S M Steels, Chennai for current availability and sourcing support.