GOES M3 Moves Up, But There’s No Need To Panic

by on

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.

Free Sample Report: Our Monthly Metal Buying Outlook

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.

GOES_Chart_October_2015_FNLPerhaps 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.

Free Download: Latest Metal Price Trends in the MMI Report

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.


Source: 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.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.