Non-oriented electrical steels are widely used as the magnetic core material in a variety of electrical machinery and devices, particularly in motors where low core loss and high magnetic permeability in all directions of the strip are desired. A method for producing a non-oriented electrical steel with low core loss and high magnetic permeability provides a steel that is produced from a steel melt which is cast as a thin strip or sheet, cooled, hot rolled and/or cold rolled into a finished strip. The finished strip is further subjected to at least one annealing treatment wherein the magnetic properties are developed, making the steel strip suitable for use in electrical machinery such as motors or transformers.