US traders mixed on silicon metal market trend
2010-02-03 08:38:27 【Print】
PITTSBURGH (Asian Metal) 3 Feb 10 – Although current silicon metal pricing continues relatively unchanged in the US market, active traders hold contrasting opinions on the trend for the upcoming weeks
Current pricing of 98.5% grade silicon metal ranges from USD1 . 20-1.23/lb, though some traders report having received quotes for immediate delivery as high as USD1.40/lb . Prices have held around USD1.20/lb for the past ten weeks approximately .
A small trader, who made a purchase in early January of 250t at USD1.18/lb delivered, was soliciting offers for early February delivery from several domestic suppliers for the same quantity . The source reported receiving quotes at USD1 . 20-1.22/lb, but speculated the market could see some slight decline in the short-term .
“The market is still pretty slow and I would not be surprised if price levels drop off in the near future,” the trader commented. “Spot demand is just overall very weak, and no buyers want to take any material that they will have to warehouse or hold onto . ”
The source reported that demand from his long-term clients is still incredibly diminished compared to pre-crash period in 2008. According to the trader, his total distribution volume is about 30% of what it was during 2008 and early 2009.
Another US-based trader, who maintains a typical distribution of around 500t/m, indicated prices at approximately USD1.23-1.28/lb . Despite relatively slack domestic spot sales, the source was bullish that the market would still see appreciation into the remainder of the first quarter .
“Globe has been making some aggressive offers at around USD1.40/lb for immediate spot delivery,” the trader said . “I am not sure how much business they are actually doing at that level, but the market is definitely moving up.”
Globe Metallurgical, one of the largest silicon metal suppliers in North America, recently reopened its Selma, AL plant with a total production capacity of 30,000t/y. It has so far not yet been disclosed how many furnaces will be brought online, though it should help to alleviate some of the supply concerns that many buyers speculate will be an issue later in 2010 .
. Some believe the market is in a slow decline while others speculate there will be some appreciation in the upcoming weeks .Current pricing of 98.5% grade silicon metal ranges from USD1 . 20-1.23/lb, though some traders report having received quotes for immediate delivery as high as USD1.40/lb . Prices have held around USD1.20/lb for the past ten weeks approximately .
A small trader, who made a purchase in early January of 250t at USD1.18/lb delivered, was soliciting offers for early February delivery from several domestic suppliers for the same quantity . The source reported receiving quotes at USD1 . 20-1.22/lb, but speculated the market could see some slight decline in the short-term .
“The market is still pretty slow and I would not be surprised if price levels drop off in the near future,” the trader commented. “Spot demand is just overall very weak, and no buyers want to take any material that they will have to warehouse or hold onto . ”
The source reported that demand from his long-term clients is still incredibly diminished compared to pre-crash period in 2008. According to the trader, his total distribution volume is about 30% of what it was during 2008 and early 2009.
Another US-based trader, who maintains a typical distribution of around 500t/m, indicated prices at approximately USD1.23-1.28/lb . Despite relatively slack domestic spot sales, the source was bullish that the market would still see appreciation into the remainder of the first quarter .
“Globe has been making some aggressive offers at around USD1.40/lb for immediate spot delivery,” the trader said . “I am not sure how much business they are actually doing at that level, but the market is definitely moving up.”
Globe Metallurgical, one of the largest silicon metal suppliers in North America, recently reopened its Selma, AL plant with a total production capacity of 30,000t/y. It has so far not yet been disclosed how many furnaces will be brought online, though it should help to alleviate some of the supply concerns that many buyers speculate will be an issue later in 2010 .