Abstract: An annealing separator for use on grain-oriented silicon steel strip comprises a magnesium oxide base composition containing rare earth metal oxides. The rare earth metal oxides are present in an amount of 0.8 to 30% by weight of the composition; but in the lower range of 0.8 to 5% by weight, and preferably up to 7% by weight, the oxides have a particle size of less than 325 mesh, and a fraction of 35-55% by weight smaller than 500 mesh. Alkali metal silicate may be present in an amount 5 to 45% by weight. Strip coated with annealing separator of the invention is characterized in that the coating is almost totally free of surface cavities, in that the denitriding and desulfuring rates are greatly accelerated, in that the surface resistivity of the coating is substantially increased, and in that the coating adheres more strongly to the strip.