Ferbasa's 2024 Ferro-Alloy Output Falls Amid Weak Global Steel Demand

Ferbasa

Brazilian producer faces falling prices, lower domestic sales, and volatile quarterly output across chromium and silicon alloys.

Ferbasa, Brazil’s leading ferro-alloy producer, reported a 1.5% year-on-year decline in total ferro-alloy production for 2024, falling to 301,208 tonnes, driven by a broader slowdown in global steel production and weak domestic demand. The company supplies various ferro-alloys including high- and low-carbon ferro-chrome, ferro-silicon, and ferro-silicon chromium to the steel industry.

While silicon alloy production rose 6% for the year to 99,836 tonnes, chromium alloy output declined slightly by 0.5% to 201,372 tonnes. However, Q4 chromium output fell 3.6% year-on-year to 51,513 tonnes, dragging total output lower for the quarter.

Quarterly Swings and Domestic Market Weakness Pressure Performance

Ferbasa saw Q4 silicon alloy production grow 9.7% year-on-year, but it dropped 21.3% compared to Q3, indicating quarterly volatility. A 6.2% increase in Q4 chromium production helped offset the silicon alloy decline.

Total ferro-alloy sales in 2024 declined 1.8% to 268,623 tonnes, with domestic sales down 8.3%, affected by rising steel imports that undercut local steel output. A 5.3% increase in exports, led by a 12.5% rise in chrome alloy exports, offered partial relief. Silicon alloy exports remained flat year-on-year.

Ferro-Alloy Prices Decline, Revenue Drops 8.1%

Despite stable export volumes, Ferbasa’s net revenue fell 8.1%, due mainly to a 7.6% drop in ferro-alloy segment revenue. This was driven by an 11.6% fall in average dollar prices for ferro-alloys.

The company blamed the pricing pressure on reduced stainless steel production in China, subdued global economic activity, and ongoing U.S. anti-dumping investigations that caused market caution around silicon alloy pricing.

Ferbasa remains exposed to volatile pricing cycles, international trade tensions, and macroeconomic headwinds, which may continue to pressure Brazil’s ferro-alloy sector in 2025.