Abstract: The initial microstructure, the distribution and size of the precipitates in 1.2%Si non-oriented electrical steel strips were investigated under the twin-roll casting condition. The results revealed that the grain sizes range from 50 to 400 μm, including the original coarse casting grains and some fine grains formed by transformation in 1550°C pouring conditions. The precipitates of casting strip include AlN and MnS. Coarse AlN precipitates of 0.5 μm in size and a small amount AlN of 100 nm are also observed. Both have little effect on the growth of the recrystallized grain. MnS precipitates with a size ranging from 30 to 40 nm is observed in the strip and annealed samples.