Ferroglobe’s FY2024 Earnings Drop 51% as Silicon Market Weakens

Ferroglobe

Manganese Alloys See Gains but Fail to Offset Silicon Alloy Declines

Ferroglobe, a Spanish producer of ferro-alloys and silicon, reported a sharp drop in full-year 2024 earnings, driven by a steep decline in silicon alloy margins. The company’s adjusted EBITDA fell 51.2% year-over-year to $153.8 million, despite rising shipments and prices in its manganese-based alloy segment.

While silicon metal shipments rose 14.6% year-on-year to 222,762 tonnes, the fourth quarter saw a 12.5% sequential drop to 49,797 tonnes, reflecting weaker sales in EMEA regions. Average silicon metal prices fell 12.2% to $3,262/tonne, contributing to overall earnings pressure.

Shipments of silicon-based alloys dropped 4.4% in 2024 to 183,030 tonnes, while Q4 shipments dropped 13.3% from Q3.

Ferroglobe cited soft demand from the automotive and construction sectors in the US and Europe as key headwinds. The segment’s adjusted EBITDA plummeted 73.7%, highlighting the impact of lower volumes and weaker pricing.

Manganese Segment Improves but Faces Q4 Cost Pressures

In contrast, manganese alloy shipments surged 21.5% year-over-year to 275,991 tonnes, with average selling prices rising 5.7% to $1,141/tonne. Yet, Q4 earnings for this segment fell sharply by 74.5% quarter-on-quarter, due to higher ore costs and reduced spot prices.

Across the company, raw material and energy costs rose as a share of revenue to 62.5%, up from 53.3% in 2023. This increase reflects higher energy prices and lower product selling prices, compounding the impact on margins.

However, Ferroglobe sees potential upside from new trade defense measures.

The US Department of Commerce implemented anti-dumping and countervailing duties on Russian ferro-silicon, while investigating imports from Brazil, Kazakhstan, and Malaysia.

Meanwhile, the European Commission launched a safeguard probe covering silicon metal, silicon alloys, and manganese alloys.

According to CEO Marco Levi, “Ferroglobe, being a local producer in both the US and Europe, will benefit from these measures, which should limit artificially low-priced imports and help stabilize the market.”