Frac sand producers this month said that an increase in supply from domestic US producers and China could force down spot prices for H2 2012.US Silica frac sand spot prices slid by 18% quarter-on-quarter in Q2 2012, while revenues rose for both its oil and gas business and its industrial specialities business, CEO Bryan Shinn told analysts.The company said that it expects the market to weaken further throughout the year, meaning that spot prices could see a further downgrade.The bearish forecast is due to a slowdown in oil and gas exploration and an increased supply from new frac sand market entrants."We expect that these factors will most likely result in lower prices on spot volumes in the second half of the year versus the first half," said Shinn.
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