Monthly Renewables MMI® Falls, But Goldman Sachs Puts $ Toward India, Japan

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Commodities, Metal Prices, Premium

The monthly Renewables MMI® fell 1.5% for the month of June, driven mostly by steel plate prices in the US, Korea, and Japan, as well as a slight fall-off in grain-oriented electrical steel (GOES) coil prices.

This metals price index appears to still be reflecting the record-low investment in the renewables sector, especially in Asia, where only $153 million was invested last year after more than $700 million in each of 2010 and 2011, according to data from research firm Preqin. However, things may be looking up soon.

Goldman Sachs announced large investments in Indian and Japanese renewables markets recently, according to the FT. Evidently, private equity firms are increasingly turning their attention – and money – to power generation.

“All these factors play into being in power generation more than in the suppliers,” said Ankur Sahu, co-head of private equity in Asia at Goldman Sachs told the FT. “We feel that generation is certainly the more interesting place to be.”

In the US renewables market, FT reports point to Google having invested over $1 billion in low-carbon power in recent years, including a $200 million Texas wind farm deal and $280 million in various solar projects.

Key Price Drivers

The monthly Renewables MMI® registered a value of 66 in June, a decrease of 1.5 percent from 67 in May.

The price of US steel plate fell 4.4 percent to $720.00 per short ton. Chinese cobalt cathodes fell a slight 1.5 percent over the past month to $32,594 per metric ton. At $3,339 per short ton, US grain-oriented electrical steel (GOES) was down 0.4 percent.

The price of Chinese steel plate rose 0.5 percent to $684.48 per metric ton after falling the previous month.

At a price of $2,119 per metric ton, silicon did not budge the entire month. Prices for neodymium remained constant this past month, holding at around $69,263 per metric ton. Hovering around $973.87 per metric ton for the month, Korean steel plate remained unchanged. Japanese steel plate held pat last month at $716.22 per metric 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.