U.S. domestic prices of grain-oriented electrical steel (GOES) fell this past month, continuing the roller coaster ride of price increases and decreases in the GOES M3 index since the start of this year.
GOES prices do not tend to follow general steel price trends, nor does simple fundamental (supply and demand) analysis help explain price trends.
Globally, for example, GOES prices are on the rise, on the back of several developments.
Demand for electric cars
An increased demand for electric cars that use high-quality non-oriented electrical steel (NOES), is one such development. MetalMiner has reviewed market growth data supplied by an automotive manufacturer indicating that demand for electric vehicles is anticipated to take about 8% market share away from internal combustion engine (ICE) automobiles by 2020, with battery electric vehicles (BEV) taking up the largest share of electric vehicle (EV) growth.
NOES is required to get the power from the battery to the motor. How does this impact GOES prices? High-quality NOES often needs to run on GOES product lines, thereby limiting GOES capacity.
In theory, this should cause prices to rise.