MetalMiner’s September spot market GOES M3-grade price index held nearly steady from a month ago dropping by only 1%. However, in a closely watched transaction, buying power just got a lot stronger as the EU recently approved the acquisition of Alstom’s energy business by GE.
The acquisition has been cleared for go, pending the sale of Alstom’s turbine business to Ansaldo, an Italian turbine manufacturer.
Powerful New Player
From a global sourcing perspective, we’d expect GE to become a price maker in terms of the company gaining significant European GOES buying power from Alstom as well as the ability to leverage opportunities for any/all global GOES contracts going forward.
The European GOES producers have a reprieve on imports due to the anti-dumping case. Whether or not they can achieve price hikes with a more powerful GE remains to be seen.
Another New GOES Market Player
Meanwhile, Big River Steel confirmed their intent to allocate $600 million in capital for a phase 2 silicon steel-finishing mill for GOES FP and NOES (non-oriented electrical steel) FP at a recent Steel Market Update conference. Allegheny Technologies, Inc. has entered its fourth week of a lockout for steel workers. Thus far, all plants impacted remain operational.
In future follow-up posts we will examine China as a market-based economy and, in particular, China’s role in GOES markets.
Exact GOES M3-Grade Price?
US grain-oriented electrical steel (GOES) fell to $2,597 per metric ton for September.
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.