The monthly GOES MMI® shot up 42 points moving from 195 to 237 – an increase of 21.5 percent – largely on the back of rising import prices.
But whether that increase really has much to do with demand remains uncertain.
It likely has more to do with comparatively low domestic producer pricing during Q4 and imports of higher grade materials from countries like Japan. Industry participants still see little effect on transformer sales yet, based on increased housing starts and construction spending.
In fact, construction spending remains a mixed bag to some extent, though overall construction spending increased 6.6% year over year, according to Gerdau Market Update. Apartments, manufacturing and lodging posted the biggest gains in private sector construction, while government spending continued to fall.
Though much has been made of a housing recovery, Gerdau Market Update points to the difference between the years 2005 and 2012. In 2005, residential spending came in at $348 billion, and even though the market has improved since the crash, 2012 residential expenditures only reached $80 billion.
According to MetalMiner IndX℠ data, US grain-oriented electrical steel (GOES) coil prices increased 1.1 percent over the past month, the third straight increase in the past couple months.
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.
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