The document describes the development of a new type of non-oriented electrical steel sheet called NKB-CORE that has ultra-low sulfur content. It has the following key properties: (1) Low hysteresis loss obtained by reducing sulfur content and suppressing surface nitriding; (2) High magnetic flux density by reducing silicon and aluminum; (3) Excellent punching properties. Testing showed that reducing the sulfur content to less than 10 ppm (4 ppm in samples tested) improved grain growth and significantly reduced core loss compared to conventional steel. However, at high annealing temperatures, surface nitriding increased hysteresis loss in the ultra-low sulfur steel.