A method of making electrical steel strip characterized by low core loss and high permeability in the rolling direction includes the steps of: hot rolling a slab of an electrical steel composition into a strip, hot band annealing in a temperature range effective to coarsen the grains sufficient to improve magnetic properties in a rolling direction of the strip, cold rolling, batch annealing in a temperature range effective to produce a batch annealed grain size of not greater than 40 νm and, preferably not greater than 20 νm, and temper rolling to provide the strip with a transfer surface roughness (Ra) of less than 49 νin. Electrical steel articles are manufactured from the steel strip upon final annealing. The electrical steel articles have a grain texture including a {110}∫001⊃ orientation and improved permeability in the rolling direction.