GOES MMI: Spot GOES M3 Prices Hold Steady While Europe Acts on Section 232

The partial government shutdown has meant large power equipment manufacturers and their suppliers can submit exclusion requests and comments, but the government’s main site that tracks such requests, regulations.gov, has not been updated since the shutdown began Dec. 22.
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Meanwhile, large power equipment manufacturers have negotiated for their 2019 contract requirements.
AK Steel did achieve some price increases, according to an industry source, likely due to the Section 232 tariffs. However, buying organizations still have the flexibility to shift production of wound cores to other locations, particularly Canada and Mexico.
Grain-oriented electrical steel (GOES) remains subject to both Section 301 and Section 232 tariffs.

Europe Set to Limit Steel Imports, Too

To stem the flood of imports that can no longer readily come to the U.S., the European Commission will vote on a measure next week to set quotas for 23 steel products, a list which includes GOES.
Similar to how the U.S. determines quota levels, the E.U. will take the average of the prior three years plus 5% and set a cap in which any volume above the cap will receive a 25% import duty, according to Reuters.
Interestingly, and different from how the U.S. sets quotas, the E.U. will set the quotas in three-month increments to prevent stockpiling.
China, however, has not served as a large exporter of GOES to the U.S. market:

Source: MetalMiner analysis of ITC data

MetalMiner does not see the European safeguard measure as having much impact on GOES prices. The measures will, however, help support European prices for other forms of steel.

Exact GOES Coil Price This Month

The U.S. grain-oriented electrical steel (GOES) M3 coil price remained flat moving slightly from $2,462/mt to $2,465/mt. The GOES Monthly Metals Index (MMI) moved up one point to 179.
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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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