The monthly Renewables MMI® increased by 3 points in February to 68, an increase of 4.6 percent, due entirely to increases in grain-oriented electrical steel pricing (GOES). Read our take on the GOES market here.
The rare earth metals included in the renewable energy metals index held steady, despite the overall Rare Earths MMI® falling by three points. The real indicator for the renewables sector involves what happens pre/post sequestration.
As we speculated earlier on the Construction MMI®, spending cuts (or the expiration and non-renewal of tax breaks and other alternative energy incentives) could negatively impact the Renewables MMI® as well, though private spending may take up the slack.
Primary Price Drivers of Renewables Index
US grain-oriented electrical steel (GOES) coil prices increased 1.1 percent over the past month to end up at $3,270 per short ton, the third straight increase in the past couple months.
Silicon, cobalt cathodes and neodymium all increased slightly as well.
The price of Japanese steel plate dropped 5.5 percent to JPY 80,000 ($872.21) per metric ton. At CNY 4,240 ($681.80) per metric ton, the price of Chinese steel plate finished the month down 2.7 percent. The price of Korean steel plate declined 2.3 percent to KRW 1.1 million ($1,011) per metric ton.
The price of US steel plate closed the month down 0.8 percent at $743.00 per short ton.
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.