The GOES M3 price increased by 6.9% from last month but we don’t think it’s indicative of an upward price trend. The two-tier commodity/premium grade price differential remains in effect.
Japanese mills continue to win price increases in the Middle East of between $100-200 per metric ton, according to a recent TEX Report.
Meanwhile, trade cases on GOES continue to make headlines. According to Eurofer, the European Steel Association, the European Commission found “evidence of severe dumping of GOES on the EU market,” up to 40% below the cost of production according to an October 5, press release.
Perhaps of greater interest is the calculation of a minimum import price (MIP) as a floor for the minimum price a buying organization would pay for GOES in Europe. Premium GOES grades, according to Eurofer, trade above the €2,300/mt level, which would allow buying organizations to import GOES duty-free.
Labor Issues to Cause Disruption?
Back in the US, many buying organizations remain concerned about the Allegheny Technologies, Inc. labor negotiations (multiple locations are currently in lockout) and in particular, whetherl the market see any tightening of supply without a near-term agreement. The consensus among service centers is that ATI may miss out on some stainless contracts for 2016 as other mills deemed more stable lock into agreements.
In addition, the lockout appears to have impacted stainless plate mills with a delay of a few weeks but we are not hearing of any issues with GOES.
Stacked Core and Transformer Part Imports
Imports of stacked cores rose by 15% from July to August growing to $1.44 million in import volume. Meanwhile, transformer part imports grew by 8% to $16.7 million according to data provided by Zepol.
Exact GOES M3-Grade Price
US grain-oriented electrical steel (GOES) rose to $2,775 per metric ton for October.
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.