US silicon metal market remains slow as prices fall slightly

PITTSBURGH (Asian Metal) 22 Jul 09 - Metallurgical grade silicon metal prices dropped again as demand from secondary aluminum smelters in the US remains incredibly slow. Silicon metal stocks from many of the largest smelters in the US, however, could be depleting soon, providing a much needed boost to a market that has been in perpetual decline for much of 2009.Asian Metal Copyright09lb.Asian Metal Copyright

Prices of silicon metal, currently at USD1.05-1.08/lb, fell almost USD0.03/lb since last week and further decreases are expected over the course of the third quarter.Asian Metal Copyright20-1.Asian Metal Copyright Silicon metal has depreciated approximately USD0.15/lb since late February when prices were reported at USD1.Asian Metal Copyright05lb delivered.Asian Metal Copyright20-1.23/lb in the US market.Asian Metal Copyright Silicon metal stocks from many of the largest smelters in the US, however, could be depleting soon, providing a much needed boost to a market that has been in perpetual decline for much of 2009.Asian Metal Copyright

One of the largest producers in the US cited prices currently at USD1.02-1.10/lb depending on procurement size.Asian Metal Copyright Silicon metal has depreciated approximately USD0.Asian Metal Copyright The source speculated that while there may still be further fluctuations, the market was still overall stable and should be improving later in the year.Asian Metal Copyright The source last concluded a deal in the beginning of July for one truckload at USD1.Asian Metal Copyright

“Demand from secondary aluminum smelters is still very slow, and it accounts for a huge portion of demand for [silicon metal]. Some of these smelters are running low on inventory and could be coming back to the market soon for a big purchase,” the producer explained.Asian Metal Copyright03lb since last week and further decreases are expected over the course of the third quarter.Asian Metal Copyright “I think the worst is probably behind us already.Asian Metal Copyright6 million in 2008.Asian Metal Copyright

A small US-based trader of silicon metal indicated current prices at USD1.04-1.09/lb.Asian Metal CopyrightUS auto sales are projected to hit only 10 million in 2009 as opposed to 13.Asian Metal Copyright The source speculated that it would be several months before prices stopped falling and any real improvements could be seen.Asian Metal Copyright “A lot of it has to do with auto sales which have yet to show any indication of picking up here domestically.Asian Metal Copyright

“I do not see any turnaround or recovery in the silicon market before the fourth quarter,” the trader noted. “A lot of it has to do with auto sales which have yet to show any indication of picking up here domestically.Asian Metal Copyright“Demand from secondary aluminum smelters is still very slow, and it accounts for a huge portion of demand for [silicon metal].Asian Metal Copyright”

The trader’s current typical monthly volume, 2-3 truckloads per month, is almost 50% lower compared to 2008. The source last concluded a deal in the beginning of July for one truckload at USD1.05/lb delivered.Asian Metal Copyright “A lot of it has to do with auto sales which have yet to show any indication of picking up here domestically.Asian Metal Copyright

US auto sales are projected to hit only 10 million in 2009 as opposed to 13.6 million in 2008.Asian Metal Copyright6 million in 2008.Asian Metal Copyright





.Asian Metal Copyright” The trader’s current typical monthly volume, 2-3 truckloads per month, is almost 50% lower compared to 2008Asian Metal Copyright