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.
Press Release T&D Europe
Price Developement- Source: T&D Europe
Excerpt Commission Regulation
