Should US GOES producers up their game to high-end production?
According to Metal Miner, the U.S. grain-oriented electrical steel (GOES) price index decreased in by 3.5% from 197 in July to 190 in August.
According to Metal Miner, the U.S. grain-oriented electrical steel (GOES) price index decreased by 3.5% from 197 in July to 190 in August.
As trade complaints in the global trade of GOES pile up, U.S. GOES prices have largely traded sideways and well off their 2011 highs, forcing global transformer and power equipment producers to shift their transformer production from the U.S. to Canada and Mexico in anticipation of a favourable trade ruling, reports Metal Miner.
According to the source, U.S. GOES producers struggle to compete with Japanese, German and South Korean producers who are able to produce highest-performing grain-oriented electrical steels, responding to the growing demand for high-performing raw materials driven by new regulations that force transformer manufacturers to adhere to more stringent efficiency standards.
Capable to produce high-end raw products, they have been able to earn noteworthy price increases, the source reports. On the other hand, serving to low- and mid-ends of the markets has yielded poor price realization for U.S. producers, which might make them think about stepping up and creating production to compete with Japanese and German producers.
Source: Metal Miner
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