Substantial quantities of oriented steel are used, mainly in power and distribution transformers. However, it has not supplanted nonoriented silicon steel, which is used extensively where a low-cost, low-loss material is needed, particularly in rotating equipment. Mention should also be made of the relay steels, used widely in relays, armatures, and solenoids. Relay steels contain 1.25 to 2.5% Si, and are used in direct current applications because of better permeability, lower coercive force, and freedom from aging.

Important physical properties of silicon steels include resistivity, saturation induction, magneto-crystalline anisotropy, magnetostriction, and Curie temperature. Resistivity, which is quite low in iron, increases markedly with the addition of silicon. Higher resistivity lessens the core loss by reducing the eddy current component. Raising the silicon content will lower magnetostriction, but processing becomes more difficult. The high Curie temperature of iron will be lowered by alloying elements, but the decrease is of little importance to the user of silicon steels.

The magnetization process is influenced by impurities, grain orientation, grain size, strain, strip thickness, and surface smoothness. One of the most important ways to improve soft magnetic materials is to remove impurities, which interfere with domain-wall movement; they are least harmful if present in solid solution. Compared with other commercial steels, silicon steel is exceptionally pure. Because carbon, an interstitial impurity, can harm low induction permeability, it must be removed before the steel is annealed to develop the final texture.