PCC BakkiSilicon Shutdown Highlights Crisis in European Silicon Market

PCC BakkiSilicon

Chinese and Brazilian Imports Drive Icelandic Plant Closure

PCC BakkiSilicon has announced a temporary shutdown of its Husavik silicon operations, citing worsening market conditions and ongoing trade challenges. The company plans to halt production from mid-July, with no set timeline for resumption. The focus keyphrase, “European silicon market,” underscores the broader industry disruption.

Price Pressures and Trade Disparities Force Layoffs

The first paragraph of PCC’s Q1 earnings report had hinted at a possible shutdown if market pressures continued. Now confirmed, the company attributes this decision to low-cost silicon imports from China and Brazil, which continue to undercut European production costs. Due to Iceland’s EFTA membership and lack of aligned tariffs with the EU, it remains vulnerable to duty-free imports, particularly from Asia. PCC warned that without regulatory action, the European silicon market may face long-term collapse.

EU Investigation Could Determine Silicon Industry’s Future

European stakeholders are awaiting the results of an EU safeguard investigation into silicon imports. PCC emphasized that without intervention, EU producers may face irreversible shutdowns. The shutdown at Husavik will result in 80 job losses, with only one furnace having been operational during Q1—leading to a 40% sales drop and an EBITDA loss of €9.5 million. PCC intends to implement improvement initiatives to prepare for a rapid restart when the European silicon market stabilizes.

The Metalnomist Commentary

The shutdown of PCC BakkiSilicon highlights the vulnerability of Europe’s silicon industry amid global trade imbalances. As China and Brazil flood the market with underpriced material, European producers face an existential crisis unless tariff harmonization and safeguard measures are urgently addressed.