Silicon metal highlights

摘要

US silicon metal prices have edged lower as demand for material has been sluggish and offers for cheaper South Africa and Brazil persist Consumers are mostly out of the spot maricet amid the traditional summer slowdown, while underlying consumption has weakened due to a shaky economic outlook. The increase in US silicon metal imports is being driven on the major downturn in Europe where debt issues have been overwhelming many countries, prompting a switch in deliveries to alternate markets. Despite the slightly weaker tone, however, there is growing sentiment in the US market that prices may have reached a bottom and may recover from September on renewed demand after the summer vacation period. Moreover, if demand jumps more than expected, availability may soon be tight given recent capacity cuts. The European silicon metal market has weakened again, with prices easing amid weak demand. We expect prices to dedine steadily until market demand picks up in the coming weeks as deals will be negotiated for the fourth quarter. Silicon metal consumers are satisfied with their intake of material in contracted business through the third quarter, with virtually no bids in the spot market.