Silicon metals producers are reducing production because of depressed prices in a soft domestic market, reduced exports, and high energy costs. The latest is Elkem Alloy, a subsidiary of Elkem Metals Inc., Pittsburgh, which has shut one of five furnaces at its plant in Alloy, W.Va. Globe Metallurgical Inc., Cleveland, has shuttered plants in Oregon and Alabama although it continues to make metal in Ohio, New York and Norway

Silicon metal is used as an alloying agent in aluminum smelting, which has been cut radically in the U.S. because of high electricity costs in the Pacific Northwest, the main smelting region. In fact, aluminum smelting is also depressed worldwide. The silicon metal industry also has been affected by a strong dollar, which has attracted high levels of imports, even with duties on certain grades. Market prices for silicon metal have slipped gradually over the past several months and are now around 50¢/lb.

Keokuk Ferrosilicon Inc. shuttered its last remaining furnace in August, eliminating 50,000 metric tons/year of 50% ferrosilicon from the market. The Keokuk, Iowa,-based company says the U.S. steel industry's 75-80% operating rate has reduced sales dramatically. Ferrosilicon, used as an alloying agent by steelmakers, has dropped to 30¢-40¢/lb, depending on the quality.