The monthly Renewables MMI® registered a value of 78 in July, falling 4.9 percent from June’s reading of 82.
The drop had much to do with steel plate prices, which account for one of the components of the index.
Source: MetalMiner IndX(SM)
“The MetalMiner renewables index took two big hits that led to overall lower readings,” said Lisa Reisman, managing editor of MetalMiner. “Steel plate prices, which feed heavily into natural gas plays; and rare earth metal neodymium, used in batteries for hybrid electric vehicles.”
Though some pricing rallied toward the end of the month, it wasn’t enough to lift overall index ratings.
Drivers of the Renewables Index Decline
US grain-oriented electrical steel (GOES) prices fell 5.8 percent over the past month, the second straight month of declines.
A 5.4 percent decline for Chinese steel plate also dragged on the overall complex. The price of US steel plate closed the month down after dropping 3.6 percent. The price of Korean steel plate held steady while Japanese steel plate remained unchanged.
Chinese cobalt cathodes prices fell 5.6 percent, whereas the price of silicon increased substantially toward the end of the month rising 6 percent.
Neodymium took a big dip toward the end of the month along with most of the rare earth metals, falling 10 percent.
The Renewables MMI® collects and weights 8 metal price points used extensively within the renewable energy industry to provide a unique view into renewable energy metal price trends over a 30-day period. For more information on the Renewables MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.