The effects of zirconium precipitates on the magnetic properties of nonoriented semiprocessed electrical steel sheets were investigated. Core loss of the test specimens declined for zirconium contents of 0.01 wt.%, whereas the magnetic induction did not change due to the addition of zirconium less than 0.133 wt.%. Precipitates and texture studies revealed that the zirconium precipitates had no effect on the grain coarsening at hot rolling and after final annealing after being cold rolled.