Silicon and ferro-alloy producer Ferroglobe anticipates that trade protection measures in the US and EU will strengthen its position in the coming quarters, even as its sales volumes and revenues fell in January-March.
Ferroglobe's silicon metal and silicon-based alloy shipments fell year on year in the first quarter, but the company believes that markets are at or near the bottom and that it will benefit from trade actions in the US and EU. Ferroglobe cited the US' final ferro-silicon anti-dumping and countervailing decision, a new probe into US silicon metal imports, and an expected preliminary decision in the EU's safeguard investigation by June.
"We expect improving demand to translate into higher revenues. We believe that once these uncertainties are resolved, local producers like Ferroglobe will be well-positioned to take advantage of these opportunities and regain market share," Ferroglobe chief executive Marco Levi said.
Ferroglobe shipped 36,308t of silicon metal in the first quarter, 31.7pc lower than 53,183t shipped in the same quarter last year on weak demand from the secondary aluminium and chemical industries. Average selling prices fell by 8.7pc to $2,881/t, underpinned by weak demand and price pressure from third-country suppliers.
Argus' US 5-5-3 grade silicon price averaged $1.20-1.27/lb ($2,645-2,799/t) fob US warehouse in the first quarter, down by 11pc from a year earlier. Argus' European 5-5-3 grade assessment averaged €2,077-2,225/t ddp Europe works, 16pc lower than the previous year.
Silicon-based alloy shipments fell by 16.2pc year on year to 42,864t in the first quarter. But higher demand in the US supported a sequential 8.7pc uptick in volumes against the fourth quarter of last year.
Shipments of manganese-based alloys bucked the trend, registering a 7.9pc increase to 67,229t compared with 62,320t in the same quarter a year earlier.
Sales totalled $307.2mn, down by 21.6pc from the previous year and 16.4pc lower on the quarter. Adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) was a loss of $26.8mn, reflecting the uncertain market environment.
