Grain-oriented electrical steel (GOES) prices declined this past month on the back of rapidly falling import volumes and lower average world selling prices. Therefore the monthly GOES MMI® registered a value of 243 in May, a decrease of 5.1 percent from 256 in April.
In addition, the US Department of Energy (DOE) issued its final ruling on efficiency standards for electrical distribution transformers. Some thought the rule would require a higher-performing GOES material not currently produced in volume in the United States, which would necessitate more imports.
However, the DOE instead issues a less stringent rule leaving the domestic producers, AK Steel and Allegheny Ludlum, well positioned.
We have noted import volumes have declined for the past three months, with April GOES imports of 1,326.1 metric tons, according to government data. Though much of the market buys GOES on contract, the spot market suggests sluggish demand.
* MetalMiner is currently recruiting buyers of GOES to participate in a price benchmarking process to provide specific GOES prices by grade. Participants would receive aggregated anonymous price information. If you are interested in contributing and receiving price data, please contact Lisa Reisman at lreisman(at)metalminer(dot)com.
Key Price Drivers
US grain-oriented electrical steel (GOES) prices fell 5.0 percent to $3,354 per short ton after rising the previous month.
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.