Spend Matters Network site MetalMiner recently published a report titled Translating Price Trends Into Metal Sourcing Strategies for 2013. One of the questions we attempt to answer in the analysis is whether the grain-oriented electrical steel (GOES) drop-off that we saw in 2012 will continue in 2013.
In the above-linked analysis, we note that the drop-off in GOES not only mirrored market sentiment (the GOES MMI® fell as industry participants told us that they saw price weakness), but also likely fell for a couple of other reasons. The first has to do with imports, or where plenty of competition exists. The second involves new Department of Energy requirements said to go into effect this year.
These new requirements would essentially force US GOES consumers to upgrade materials, and some of these materials only come from offshore sources. We have yet to confirm whether those new regulations went into effect. Therefore, our suggestion to GOES buyers appears in opposition to what we might tell a buyer of one of the more volatile metals: buy only what one needs and ride the GOES price wave down.
Of course, if the regulations do not go into effect, we might expect to see greater price support for GOES materials.
Download the full report here: Translating Price Trends Into Metal Sourcing Strategies for 2013. Also check out our latest GOES MMI report on MetalMiner.