Market prices for high-technology products appear to be in a holding pattern, and J.P. Morgan analyst Carlos Asilis says they will remain stagnant into 2003. Factors that had been propping the high-tech economy soon could evaporate: Industrial activity has slowed sharply since mid-year, government spending is slowing, as budget-deficit concerns are reemerging, and corporate spending is still down. Asilis says the recent downturn in indexes for manufacturing, industrial production, and capacity utilization are a good gauge of the price outlook for high-tech products and their components.

Spot molybdenum prices slipped 25-30¢/lb early this month, traders report, because anticipated growth in orders from steelmakers for fourth quarter deliveries failed to materialize. Ferromolybdenum prices retreated to a range of $5.50-$6/lb from $5.75-$6.20. Canned moly oxide fell to a $4.50-$4.90/lb trading range from $4.50-$5.20.

Rival microprocessor suppliers AMD and Intel say persistently weak demand for personal computers has forced them to continue cutting chip inventories in the supply chain. Both firms saw declines in third quarter unit sales, revenue and average selling prices. Whether microchip prices will stabilize or recover in the fourth quarter isn't certain because neither firm sees a real turnaround in PC for some time.

Producers of chemicals continue to endure a two-year downturn in demand that will continue to depress market prices, says Bear Stearns analyst Frank Mitsch. In fact, chemical firms have been ratcheting down earnings forecasts, which Mitsch says shows that demand recovery is a long way off. He says the industry is seeing soft demand—and weak transaction prices despite announced increases for numerous products.

Spot U.S. copper opened October at 71¢ and Goldman Sachs analyst Alberto Arias sees low cathode prices for the rest of this year "due to recent signs of reweakening demand." U.S.-delivered cathode averaged 88¢ in the U.S. in 2000, but it slipped to 77¢ in 2001 and is on pace to average 75¢ this year.

Average spot prices for reprographic bond (20-lb, 83/84 bright, cut size white paper) have begun to move up this month. However, prices for other key printing/writing paper grades have remained flat despite a seasonal uptick in demand. Buyers report major proposed prices increases of $40/ton for white papers.