Elkem Silicon Products Weaken as Low Ferro-Silicon Prices Hit Earnings

Elkem Silicon

Elkem silicon products came under pressure in 2025 as weak demand and low prices for silicon and ferro-silicon reduced group earnings despite higher sales volumes. The Norwegian metals group reported EBITDA of Nkr3.44 billion, or about $360 million, down 18% from the previous year.

Elkem silicon products remained a central part of the business, contributing 42% of group sales. Sales volumes in the division rose 3% to 434,000 tonnes, but weaker pricing outweighed the benefit of higher volumes.

The division’s EBITDA fell 47% to Nkr1.52 billion. This shows how exposed silicon producers remain to oversupply, soft industrial demand, and trade measures that are reshaping global alloy flows.

Silicon and Carbon Divisions Reflect Metallurgical Market Weakness

Elkem silicon products faced difficult conditions across silicon metal, ferro-silicon, and foundry alloy markets. The company described the environment as marked by weak demand and low sales prices, reflecting a prolonged downturn in metallurgical value chains.

The carbon solutions division also weakened. The unit, which supplies specialty carbon products to metallurgical smelting and primary aluminium producers, recorded sales of 261,000 tonnes, down 5% from 2024.

Carbon solutions EBITDA declined 20% to Nkr908 million. Elkem linked the decline to difficult conditions in metallurgical industries, where customers cut production and reduced demand for carbon inputs.

Silicones Recovery Contrasts With Trade Pressure on Alloys

Elkem’s silicones division performed strongly despite weakness in its metallurgical units. Silicones sales volumes rose 14% to 443,000 tonnes, while EBITDA more than doubled to Nkr1.10 billion after expansion projects in China and France were completed.

The stronger silicones result comes as Elkem reshapes its portfolio. The company launched a strategic review of the division last year and recently agreed to sell a majority stake to China-based Bluestar.

Trade fragmentation remains a major issue for Elkem. The company cited EU safeguard measures on ferro-silicon, ferro-manganese, and silico-manganese imports from countries including Norway and Iceland, along with US countervailing duties on Norwegian silicon metal. These measures add complexity to sales channels, pricing, and long-term competitiveness.

The Metalnomist Commentary

Elkem’s results show that higher volumes cannot protect silicon producers when prices and trade flows turn against them. The company’s restructuring and silicones sale suggest a sharper focus on surviving a fragmented, low-margin alloy market.