This is another example of how incoherent and ill-considered the US economic escalation against China has been.
An article by Metal Miner, the largest metals-related media site in the United States, according to a third-party ranking site. Oil prices
- Silicon and cobalt prices are expected to continue to decline from 2023 onwards due to prolonged renewable energy supply bottlenecks.
- The United States is heavily reliant on China for its supply of solar panels.
- By one estimate, 70 percent of transformer units in the U.S. are at least 25 years old, and 15 percent are more than 40 years old.
Renewable Energy MMI (Monthly Metals Index) fell 3.8% month-on-month and continues to trend slightly lower. Prices of silicon and cobalt, the two largest components of the index, continue to fall due to prolonged renewable energy supply bottlenecks. 2023This, combined with a fall in grain-oriented electrical steel prices, caused the index to fall.
Silicon for solar panels: a geopolitical imbalance?
The United States is heavily dependent on China for its supply of solar panels. However, this reliance on Chinese manufacturing has raised several concerns. One notable issue is the allegation of forced labor in China’s Xinjiang Uyghur Autonomous Region, which accounts for a significant portion of the world’s production of polysilicon, the main component of solar panels.
Evidence of forced labor abuses against Uighurs and other Muslim minorities has led the U.S. government to restrict imports of products made in Xinjiang, but shipments of solar panels from China continue to be delayed and seized as companies struggle to obtain the paperwork needed to prove their products are free of forced labor. As result.
The dangers posed to global supply chains by China’s dominance in solar panel production are also a major concern: 14% of the world’s polysilicon is produced in a single facility in China, for example, and any disruptions to production at those plants could have ripple effects across the global industry.
There are also many environmental issues due to China’s heavy reliance on manufacturing. The main source of electricity used in China’s polysilicon production is coal-fired power generation, which increases carbon emissions. solar panelHowever, it is possible to reduce overall emissions by shifting production to areas with cleaner energy sources.
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Addressing these issues
To overcome these issues, efforts are underway in the United States to support domestic solar panel manufacturing, but domestic demand continues to grow faster than production capacity, meaning imports will need to continue for the time being. There are.
China is the world’s largest producer of solar panels, helping to lower prices and increase availability, but U.S. reliance on Chinese imports raises issues including forced labor, fragile supply chains and environmental impacts.
Grain-oriented electrical steel sheet/GOES MMI
Grain-oriented electrical steel (GRP) MMI again fell sharply, dropping 28.89% to $3,399 per tonne.
Tornado destroys transformer, exacerbating transformer shortage
The U.S. power system was severely damaged by a series of tornadoes that recently struck across the country, destroying many transformer systems. This comes at a time when the country is already facing a severe transformer shortage, making replacement of damaged equipment extremely difficult.
Transformers are key components of the power grid, converting high voltage electricity from power plants into lower voltages suitable for use by homes and businesses, but many of these transformers are already nearing the end of their expected lifespan.
By one estimate, 70% of transformer units in the U.S. are at least 25 years old, and 15% are older The transformer shortage has been growing for more than 40 years, while catastrophic weather events like tornadoes have depleted transformer stockpiles, forcing utilities to frantically search for alternatives.
Overcoming the Transformers Dilemma
To overcome this Tough questionExperts recommend developing a thorough resilience plan that focuses on strengthening the entire power sector and improving lifecycle management, which could include using cutting-edge technologies to manage replacement capacity in emergency situations. Spare Transformer Installation Program (STEP)The aim is to ensure that power companies have a strategic reserve of transformers that can be used in emergencies.
Moreover, to reduce energy waste and carbon emissions by 340 million tons over the next 30 years, the Department of Energy recently proposed increasing the use of amorphous steel, a more efficient material for transformer cores, which is estimated to save consumers $15 billion. Reduced energy bills.
Nevertheless, some lawmakers and industry experts are concerned that the transition to new types of transformers could exacerbate current supply chain issues and hinder the growth and supply of the power grid. Maintenance costs.
Renewable Energy MMI: Notable price fluctuations
Discover why technical analysis is a better predictive method than fundamental analysis and why it matters to your investing. Metal Purchase.
- Silicon prices fell 3.24% to $1,836.07 per tonne.
- Cobalt prices fell 5.2% to $26.89 per kilogram.
- Neodymium prices rose 7.67% to $64,639.74 per tonne.
- Finally, steel plate prices were flat, rising slightly by 1.47%, which brought prices to $1,310 per short ton.
