Construction spending, and in particular power generation spending and growth, drive the GOES market.
The biggest driver of GOES prices involves construction spending and specifically power construction spending. According to our friends at Reed Construction Data, “Prices for inputs used in nonresidential construction fell for the second month in a row. Major areas behind the decline include drops in copper, steel, and oil prices.”
In addition, the construction spending picture has become clouded with several elements slowing in growth from non-residential construction down 2.1% for the first quarter over last year and 1.7% growth in March for residential construction, much lower than February’s whopping 4.0% gain.
There are some concerns about construction growth, which fuels the GOES numbers, though admittedly some elements remain positive. These include residential and non-residential housing starts, both steel market leading economic indicators.
The monthly GOES MMI® registered a value of 242 in June, a decrease of 0.4 percent from 243 in May.
With a 0.4 percent decline, U.S. grain-oriented electrical steel (GOES) coil prices closed the month by dropping only slightly.
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.