Extreme rise in prices for electrical sheet
During the past few months, European transformer manufacturers have been suffering as a result of a sharp rise in purchase prices for electrical sheet - with all the resulting drawbacks in terms of manufacturing costs and profitability. Public indices such as the T&D Europe Index evidence price rises amounting to 86 % for the Hi-B grades and to 47 % for the conventional grades between QII 2014 and QIII 2015. Never before have prices risen to such an extent within such a short period of time.
The essential factors influencing the dramatic price increases are:
- Legal requirements regarding compliance with more stringent efficiency guidelines such as the Ecodesign Directive valid in the EU since 1st July 2015 have resulted in a world-wide shortage of the best highly permeable types required to this effect.
- Anti-dumping measures were enacted in essential markets, resulting in price increases and reduced product availability. Thus, the European Commission has defined so-called minimum import prices (MIPs) for all imported GOES products as of 30 October 2015. The minimum price level specified thereby with binding effect is approx. 25 - 35 % above the level determined by the market until the first half-year 2014. The People's Republic of China has also instigated anti-dumping investigations which will result in duties of 30 - 45 % to be levied on GOES imports presumably as of March 2016.
- Moreover, the considerable devaluation of the EUR versus the USD (over 20 % since 2014) has resulted in essential increases in the European market price versus the price level on the dollar markets.
Due to electrical steel sheet representing a large proportion of the costs of a transformer, the above-mentioned effects are reflected considerably in the final prices. We would like to ask all our customers and business associates for their understanding for the consequences of these extraordinary developments.