While domestic grain-oriented electrical steel prices fell slightly this past month here in the U.S., the outlook for GOES globally looks bright.
According to a recently released study from Future Market Insights, the GOES segment of the market 6 should grow by 7.5% in value in 2016 and 7.3% to 2026 due to increased demand from the energy and power generation industries.
From a geographical perspective, North America, Europe and Japan all contribute to a strong market, however, the Asia Pacific region serves as the largest market by volume with China leading the charge.
Despite the projected growth of GOES, many flat-rolled steel products have become subject to one form of trade case or another. Despite the anti-dumping duties imposed on China in the case of cold-rolled coil and other countries for hot-dipped galvanized, hot-rolled coil and others, when an exporting country receives a punitive duty, the flow of material merely moves to other exporting nations not identified in the specific trade case.
Steel prices have been in a steady decline since the beginning of August. At best, trade cases provide a few months of pricing power for domestic producers.
Two years have passed since AK Steel and Allegheny Technologies, Inc. brought their GOES trade petitions to the International Trade Commission. The ITC found the domestic producers “unharmed” by imports. The trade cases resulted in absolutely nothing for the domestic producers — ATI even shut down its GOES line. MetalMiner’s M3 MMI index and actual spot market coil prices have declined since 2014.
The GOES MMI® collects and weights 1 global grain-oriented electrical steel price point to provide a unique view into price trends over a 30-day period. For more information on the GOES MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.