EU ferro-alloy safeguards: Ferroglobe braces for trade decision amid market strain

Ferroglobe

EU ferro-alloy safeguards could reshape pricing in 2026

Ferroglobe signaled that EU ferro-alloy safeguards remain preliminary but pivotal. The firm expects EU ferro-alloy safeguards to curb import-driven price pressure in 2026. However, visibility is limited as Brussels prepares August prelims and a November final decision.

Mixed quarter highlights shifting product strategy

Quarterly results showed uneven momentum across products and regions. Ferroglobe’s silicon-based alloy shipments rose 13pc to 53,048t. The company switched two silicon metal furnaces to ferro-silicon to meet demand and cut costs. Meanwhile, silicon metal shipments fell 29pc to 44,610t.

European silicon prices weakened on cheaper Chinese imports, eroding producer share. EU silicon metal producer share slid from ~40pc to ~15pc. Curtailments hit Iceland and Germany as margins compressed. According to market logistics sources, MIPs may cover several ferro-alloys, but not silicon metal. Therefore, exposure to silicon metal remains a risk.

The US offered a firmer backdrop for trade defense. US AD/CVD actions on ferro-silicon supported prices and volumes. The firm awaits US rulings on silicon metal from five countries later this year. As a result, North America could offset some EU pressure if duties land.

Financials reflected the difficult macro and price environment. Sales slipped 14pc year on year to $386.9mn. Adjusted ebitda came in at $21.6mn, and first-half earnings posted a $5.2mn loss. Management withdrew full-year ebitda guidance, citing uncertainty and low visibility.

EU ferro-alloy safeguards will shape capital and production plans. Preliminary measures are due 18–19 August, with a final call on 20 November. Ferroglobe, led by CEO Marco Levi, still advocates safeguards across its full portfolio. Meanwhile, the firm rebalances output toward alloys with stronger pricing.

The Metalnomist Commentary

If MIPs exclude silicon metal, EU ferro-alloy safeguards may only partially stabilize Ferroglobe’s mix. Watch furnace allocations, cash costs, and US duty outcomes for margin relief. A broad EU remedy would tighten imports and lift realized prices into 2026.