A method of making electrical steel strip characterized by low core loss, high permeability and good cleanliness includes producing a slab having a composition consisting essentially of (% by weight): up to 0.02 C, 0.20-1.35 Si, 0.10-0.45 Al, 0.10-1.0 Mn, up to 0.015 S, up to 0.006 N, up to 0.07 Sb, up to 0.12 Sn, and the balance being substantially iron. The slab is hot rolled into a strip with a finishing temperature in the ferrite region. The strip is coiled at a temperature less than 1200.degree. F. and, preferably, less than 1000.degree. F. The strip which has not been subjected to an annealing operation after the coiling is subjected to cold rolling. The strip is then batch annealed and temper rolled.