US silicon prices have a downside potential of $1.13 per lb

 In its latest report on silicon metal, Jefferies wrote: “More recently, aluminum consumers have favored sourcing Si derived from lower-cost aluminum scrap purchases. Earlier this year, following China’s import restriction (25% tariff) on certain scrap types, namely zorba, US nonferrous scrap prices, including Si-rich cast aluminum scrap, collapsed. Prices for cast aluminum scrap, which generally contains ~10% Si (5-25% range), have retreated -25% from the March peak to $0.48/lb (-$0.16). Despite the overhang of aluminum scrap, secondary producers reportedly came off the sidelines to complete several Si metal purchases in recent weeks. Based on the Euro to China arbitrage spread, we estimate EU Si metal downside to $0.98/lb, with a normalized spread implying downside to the US at $1.13.”

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Who is Jeffries?