Silicon metal market stable in US but demand stays depressed
2009-06-30 08:52:04 【Print】
PITTSBURGH (Asian Metal) 30 Jun 09 - Prices of silicon metal remain stable in the US market with demand slow but generally sustained, market participants note. Most concluded deals remain in the USD1.10-1.13/lb range.
It is believed that Canada-based Timminco Ltd., which opened one of its three silicon metal furnaces in Quebec, recently concluded a new long-term contract with a fairly large US mineral processor. The resumption of production is an isolated event, however, and not expected to have any effect on the overall US silicon metal market
One of the largest silicon metal suppliers in the US called the current market “fairly stable” while citing prices at around USD1.13/lb. According to the source, big market fluctuations are unlikely even as the economy enters the third quarter.
“There has not been any big changes in the last few weeks,” the supplier explained. “We do not expect any increases until at least the end of the year, however. Most business is just above or below USD1.13/lb.”
A small US-based trader who cited prices at USD1.10-1.13/lb on average distributes 50t/m in the domestic market. The source was bearish about demand through the summer, but was generally positive about potential growth towards the end of 2009.
“Demand from secondary aluminum smelters in the US is still very weak,” the source explained. “As that represents a huge portion of the market, I do not think prices will improve until that sector recovers. It is difficult to say when that will be, but I would imagine not before the fourth quarter.”
The trader in 2008 traded more than 100t/m of silicon metal in the US, but due to decreased demand has only managed 50% of the total volume during this year.
It is believed that Canada-based Timminco Ltd., which opened one of its three silicon metal furnaces in Quebec, recently concluded a new long-term contract with a fairly large US mineral processor. The resumption of production is an isolated event, however, and not expected to have any effect on the overall US silicon metal market
One of the largest silicon metal suppliers in the US called the current market “fairly stable” while citing prices at around USD1.13/lb. According to the source, big market fluctuations are unlikely even as the economy enters the third quarter.
“There has not been any big changes in the last few weeks,” the supplier explained. “We do not expect any increases until at least the end of the year, however. Most business is just above or below USD1.13/lb.”
A small US-based trader who cited prices at USD1.10-1.13/lb on average distributes 50t/m in the domestic market. The source was bearish about demand through the summer, but was generally positive about potential growth towards the end of 2009.
“Demand from secondary aluminum smelters in the US is still very weak,” the source explained. “As that represents a huge portion of the market, I do not think prices will improve until that sector recovers. It is difficult to say when that will be, but I would imagine not before the fourth quarter.”
The trader in 2008 traded more than 100t/m of silicon metal in the US, but due to decreased demand has only managed 50% of the total volume during this year.
