Goldman Sachs, Google May Lift Renewable Energy Metals Price Index

by on

The monthly Renewables MMI® fell 1.5% for the month of June, driven mostly by steel plate prices in the US, Korea, and Japan, as well as a slight fall-off in grain-oriented electrical steel (GOES) coil prices.

This metals price index appears to still be reflecting the record-low investment in the renewables sector, especially in Asia, where only $153 million was invested last year after more than $700 million in each of 2010 and 2011, according to data from research firm Preqin. However, things may be looking up soon.

Goldman Sachs announced large investments in Indian and Japanese renewables markets recently, according to the FT. Evidently, private equity firms are increasingly turning their attention – and money – to power generation. “All these factors play into being in power generation more than in the suppliers,” Ankur Sahu, co-head of private equity in Asia at Goldman Sachs told the FT. “We feel that generation is certainly the more interesting place to be.” (To the tune of more than $600 million.)

In the US renewables market, Google has also invested tons of cash in wind and solar.

Google put in more than $1 billion in low-carbon power in recent years, including a $200 million Texas wind farm deal and $280 million in various solar projects, according to the FT.

Key Price Drivers

The monthly Renewables MMI® registered a value of 66 in June, a decrease of 1.5 percent from 67 in May.

today's metal prices - MetalMiner IndXThe price of US steel plate fell 4.4 percent. Chinese cobalt cathodes fell a slight 1.5 percent over the past month. US grain-oriented electrical steel (GOES) coil was down 0.4 percent.

The price of Chinese steel plate rose 0.5 percent after falling the previous month.

Silicon prices did not budge the entire month. Prices for neodymium remained constant this past month.

FREE Download: The most recent Monthly MMI® Report – price trends for 10 metal markets!

The Renewables MMI® collects and weights 8 metal price points used extensively within the renewable energy industry to provide a unique view into renewable energy metal price trends over a 30-day period. For more information on the Renewables MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.