PRODUCER PRICE INDEX FOR INDUSTRIAL SILICA SAND


fairly stable in the next few years. Tat being said, the possibility for a crisis in the industry’s sand supply is not zero, though many would argue it is remote. Te biggest threat would be a massive surge in demand for fracking sands, which, considering the growth in overall capacity in recent years, remains unlikely. Predictably, the further one looks


ahead, the more uncertain the mar- ket appears. Many analysts expect natural gas and oil prices to increase sharply near the end of the decade, making sand for fracking a more valuable commodity. If the price difference between fracking sand and metalcasting sand becomes size- able enough, suppliers may migrate toward the more lucrative market. Since the advent of the fracking


boom, the relationships between metalcasters and sand suppliers have grown a bit closer. Metalcasters can avoid problems in their sand supply by getting to know their suppliers.


Data from the U.S. Bureau of Labor Statistics, which tracks the price index (with the 1982 price as 100) on a monthly basis, shows the dramatic jump in price in 2011 followed by two years of relative stability.


Tat way, they get a sense of the sup- plier’s dedication to the metalcasting market and whether it will be tempted by the fracking industry if prices reach a certain point. Metalcasting will be around for a long time—as long as there is a need


for manufacturing. Many sand suppli- ers understand it is a stable market that represents a decent volume of mate- rial. Te number of customers for the material is healthy, so a supplier can diversify its customer base by dealing with the metalcasting industry.


December 2014 MODERN CASTING | 25


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