A mathematical description of the non-linear and anisotropic behaviour of electrical steel sheet under two dimensional excitation is presented considering the field penetration into the bulk of the material. This description allows the calculation of the distribution of the magnetic field strength and the magnetic flux density for arbitrary two dimensional flux conditions in the cross section of the sheet. The calculation of the dynamic hysteresis loops and the loci of the magnetic field strength, respectively, by means of the proposed mathematical model shows very good agreement with the corresponding measurement results.