Steel plate prices in the US and Korea almost single-handedly drove our index tracking metals used in the renewable energy sector higher for the August reading. Although the neodymium price from China rocketed upward (along with a host of other rare earth metals and oxides), it’s not weighted heavily enough to have made an impact.
So does this mirror what’s been happening in the renewables sector?
US power construction spending did increase in June to $88.2 billion, from $85 billion in May, which generally supports July’s price increases on this index. However, looking ahead, “according to the International Energy Agency (IEA), cumulative worldwide investment in new fossil-fuel extraction and processing will total an estimated $22.87 trillion between 2012 and 2035, while investment in renewables, hydropower, and nuclear energy will amount to only $7.32 trillion.
“In these years, investment in oil alone, at an estimated $10.32 trillion, is expected to exceed spending on wind, solar, geothermal, biofuels, hydro, nuclear, and every other form of renewable energy combined.”
Big Price Movers
The price of neodymium rose 20.9 percent. After dropping the previous month, the price of silicon prices rose 1.5 percent. US steel plate prices increased 1.4 percent. The price of Korean steel plate rose 0.9 percent after falling the previous month.
Chinese cobalt cathodes prices fell 1.9 percent after rising the previous month. Chinese steel plate fell 0.5 percent. With a 0.3 percent decline, US grain-oriented electrical steel (GOES) closed the month lower.
Prices for Japanese steel plate remained pretty much constant this past month.
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.