Ferroglobe Anticipates 2H Recovery Amid US and EU Trade Actions on Silicon

Ferroglobe

Trade protections poised to support Ferroglobe’s silicon recovery

Ferroglobe silicon trade action recovery is gaining traction as the company expects stronger second-half results supported by U.S. and EU protection measures. Despite lower Q1 volumes and revenues, management remains confident that market-bottom dynamics and trade enforcement will favor local producers.

Q1 results show steep declines in silicon shipments and pricing

In Q1 2024, Ferroglobe shipped 36,308 tonnes of silicon metal—down 31.7% year-over-year—due to weak demand from the secondary aluminum and chemical sectors. Average selling prices dropped 8.7% to $2,881 per tonne amid competitive pressure from third-country suppliers. Silicon-based alloy shipments also fell 16.2%, though U.S. demand offered a sequential lift of 8.7% over the prior quarter.

Policy shifts and market stabilization expected to restore earnings

The U.S. finalized anti-dumping and countervailing measures on ferro-silicon and launched a fresh probe into silicon metal imports. Meanwhile, the EU’s safeguard decision on silicon imports is expected by June. These actions, Ferroglobe believes, will help restore fair market conditions and improve margins. Manganese alloy shipments were a bright spot, rising 7.9% year-over-year to 67,229 tonnes.

The Metalnomist Commentary

Ferroglobe’s near-term struggle reflects global overcapacity and sluggish industrial demand. However, with trade barriers taking shape, North American and European producers may soon reclaim lost market share—provided demand recovers as forecasted.