AK Steel published a zero-dollar surcharge for December quotations. MetalMiner has never seen a zero-dollar surcharge from either of the domestic producers, going all the way back to February 2004, the start of the MetalMiner GOES price data tracking service.
Surcharges have not hit these levels since January of 2009 when AK published a surcharge of $10 per metric ton.
Surcharges reflect costs for raw materials and energy, both of which have fallen significantly this past year.
Meanwhile, the M3 GOES index held steady at 176 as other drivers of the monthly index showed some strength.
Insiders suggest that the domestic mills have taken different stands to extract price increases from the domestic market during annual contract negotiations. AK has used Allegheny Technologies Inc.’s worker lockout as a reason to move business to AK. ATI, however, has countered with new temporary workers that they say will keep lines running efficiently. No matter the winner in that battle, we believe buying organizations have hedged their moves and have already shifted some 2016 spend to overseas suppliers.
As a defensive measure against the two domestic mills, global transformer and power equipment producers forged ahead with sourcing both transformer parts and wound cores from producers outside the US.
In an unrelated move, China announced some market economy reforms to create greater competition for electricity transmission.
This comes undoubtedly as a result of China’s Protocol of Accession to the WTO and its desire to be considered a market economy. Currently, for trade cases including GOES, WTO members treat China as a non-market economy.
MetalMiner expects China’s Protocol of Accession to the WTO to become a heated debate.
Exact GOES Coil Price This Month:
US grain-oriented electrical steel (GOES) coil fell slightly to $2,422 per metric ton, nearly the same as last month’s price.
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.
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