Ferroglobe’s FY24 Earnings Plunge Over 50% Amid Silicon Alloy Price Decline

Ferroglobe's

Rising Manganese Sales Fail to Offset Silicon Alloy Slump

US-EU Trade Measures Offer Hope Against Import Pressure

Ferroglobe, the Spanish-based ferro-alloy and silicon producer, reported a 51.2% drop in adjusted EBITDA to $153.8 million for full-year 2024. The sharp earnings contraction was driven by falling silicon alloy prices and sluggish demand in key end-use sectors, particularly in Europe and the US.

Silicon Alloy Weakness Overshadows Shipment Gains

While silicon metal shipments rose 14.6% year-on-year to 222,762 tonnes, average sales prices dropped by 12.2% to $3,262/t. In the fourth quarter, shipments fell 12.5% quarter-on-quarter, with weak demand in EMEA markets cited as the primary cause.

Shipments of silicon-based alloys also declined by 4.4% year-on-year to 183,030 tonnes, while average prices fell 13.8% to $2,208/t. The segment’s adjusted EBITDA suffered the most, plunging 73.7%, largely due to slowed consumption from auto and construction industries.

Manganese Alloys Outperform, but Q4 Challenges Persist

Ferroglobe saw strong manganese-based alloy performance, with shipments up 21.5% to 275,991 tonnes and prices increasing 5.7% to $1,141/t. However, Q4 profitability collapsed due to higher ore costs and softer selling prices, with segment EBITDA down 74.5% quarter-on-quarter.

Rising raw material and energy costs further strained margins. These costs accounted for 62.5% of sales, up from 53.3% in 2023, driven by weaker prices and persistent energy inflation across operational regions.

Trade Protections May Stabilize Competitive Pressure

Despite near-term headwinds, Ferroglobe identified favorable trade developments. Measures by the US Department of Commerce and the European Commission — including anti-dumping duties on Russian imports and safeguard investigations into key alloys — may shield domestic producers from price suppression.

CEO Marco Levi emphasized that as a local producer in the US and Europe, Ferroglobe stands to benefit from these interventions. These actions may help rebalance the market by curbing artificially low-priced imports, ultimately improving earnings visibility for 2025.