OM Holdings Increases FeSi Output Amid Si Metal Shift

OM Holdings

OM Holdings boosted ferro-silicon (FeSi) production in Q4 by converting silicon metal furnaces. However, manganese alloy output declined due to a furnace outage.

Production Shifts and Furnace Operations

OM Materials produced 48,061t of FeSi in Q4, an 18.3pc year-on-year increase. 2024's total FeSi output reached 190,517t, up 36.5pc from 2023. This increase resulted from switching two silicon metal furnaces to FeSi production due to weak silicon demand. At year-end, six FeSi furnaces and two silicon metal furnaces produced FeSi, while seven furnaces produced manganese alloys. One manganese alloy furnace restarted after a November outage.

Manganese Alloy and Ore Output Decline

Consequently, manganese alloy production fell 14pc to 72,769t in Q4. Manganese sinter ore production dropped 46.2pc to 23,204t. Full-year manganese alloy production rose 8pc to 317,013t. Sarawak's capacity, after furnace conversion, includes 120,000-126,000 t/yr of FeSi, 333,000-400,000 t/yr of manganese alloys, and 21,500-24,500 t/yr of silicon metal. The sinter plant can produce 250,000 t/yr of sinter ore.

Trading and Mining Developments

OM Materials traded 387,271t of ores and alloys in Q4, down from 514,757t last year, driven by lower manganese ore volumes. However, late-quarter market quotes showed signs of increase. The group trialed restarting its Bootu Creek manganese mine, aiming for 35pc Mn grades. Initial grades reached 30-33pc Mn. A second trial is planned this quarter. The ultra fines plant restart is delayed to Q2. Tshipi Borwa Manganese mine, where OM holds a stake, exported 683,090t in Q4, up from 624,681t last year. 2024's total exports increased 8.9pc to 3.5mn t.

India ferro-silicon power tariff crisis reshapes regional supply

Ferro-Silicon

India ferro-silicon power tariff crisis is forcing cutbacks and shutdowns. India ferro-silicon power tariff crisis stems from soaring power and charcoal costs. India ferro-silicon power tariff crisis threatens margins as tariffs stay elevated into 2026.

Cost shock and shutdowns in Meghalaya

Producers face a fixed tariff of Rs5.92/kWh in Meghalaya until March 2026. The state’s FeSi hub has 5,000–6,000 t per month capacity. However, many plants cut output by 20–30 percent. Three to four furnaces reportedly shut in recent weeks. Meanwhile, operators warn permanent closures may follow mounting losses.

Demand slump and competitive pressure

Domestic demand from stainless steel remains weak. As a result, FeSi offtake and pricing stay under pressure. Some manufacturers substitute with 98 percent silicon metal. Therefore, FeSi loses share in certain applications. Producers also battle higher charcoal prices, further eroding viability.

Producers urge policy relief to avert deeper cuts. Government action on power costs could stabilize operations. Otherwise, traders expect more closures in the coming months.

Bhutan strengthens its foothold with cheap hydropower. Consequently, Bhutanese FeSi offers near Rs85,000 per tonne ex-works. New plants and expansions are lifting Bhutan’s regional supply. India’s FeSi sector must adapt or cede long-term share.

The Metalnomist Commentary

India’s FeSi outlook hinges on power economics, not just demand. Relief on tariffs and input costs could slow attrition. Watch substitution trends and Bhutan’s capacity ramp through 2026.

Ferbasa Ferro-Alloy Production Rises as Prices Weigh on Earnings

Ferbasa

Ferbasa ferro-alloy production increased in the second quarter despite weaker prices and higher costs. Ferbasa ferro-alloy production reached 75,406t, up 2.5pc year on year. However, adjusted EBITDA dropped 32pc as electricity and chrome ore costs climbed.

FeSi and ferro-chrome output strengthen

Ferbasa ferro-alloy production was broad-based across product lines. Chromium alloys rose 2.1pc to 51,051t. Silicon alloys rose 3.4pc to 24,335t. High-purity ferro-silicon output surged 27pc and formed 45pc of silicon alloys. As a result, the mix favored higher-spec FeSi demanded by advanced steelmakers.

Sales improved, but margins compressed

Ferbasa lifted ferro-alloy sales 14pc quarter on quarter to 79,000t. Exports jumped 29pc, while domestic sales rose 1.1pc. Nevertheless, lower global ferro-alloy prices pressured revenue. Therefore, EBITDA fell to R$67.6mn, down 32pc year on year. Power inflation and chrome ore costs further tightened margins.

Trade policy adds risk to outlook

North American steel tariffs rose from 25pc to 50pc. That shift could curb Brazilian steel output and indirect demand for alloys. Meanwhile, an EU safeguard probe into ferro-silicon and manganese alloys could reshape import access. Consequently, contract pricing and regional allocation decisions remain critical for 2H.

The Metalnomist Commentary

Ferbasa’s near-term playbook is clear: prioritize high-purity FeSi, optimize furnace dispatch, and hedge power exposure. Watch tariff pass-through and EU safeguards, which will influence realized prices more than volumes. Cost discipline and product mix will determine whether output gains translate into cash flow.

Elkem low-CO2 slag recycling accelerates circular materials

Elkem

Elkem low-CO2 slag recycling gained momentum with a NOK 32.8mn grant. The Elkem low-CO2 slag recycling program will convert FeSi slag and secondary silicon into cement alternatives. As a result, Elkem low-CO2 slag recycling targets deep cuts in construction material emissions.

Turning FeSi slag into cement alternatives

Elkem will develop cement alternatives from ferro-silicon slag at its EAF sites. The company targets a CO2 footprint under one-third of standard cement. Testing will run at the Kristiansand facilities acquired in 2024. The materials will serve construction and automotive supply chains. Innovation Norway’s Environmental Technology Scheme funds the project.

Scaling circularity with secondary silicon

Elkem plans recycling rates above 50pc in the new products. The flows will include secondary silicon and FeSi slag fines. Therefore, the project can reduce waste while cutting clinker demand. Lower clinker intensity drives Scope 3 reductions for builders and OEMs. Partners can validate performance during pilot production in southern Norway.

Circular products for resilient supply chains

The initiative aligns with Europe’s low-carbon materials push. It also diversifies binder options for precast and ready-mix users. Meanwhile, cement substitution can ease price volatility tied to carbon costs. Elkem’s silicon expertise and grid access support competitive abatement costs.

The Metalnomist Commentary

Elkem’s move tackles two pain points: slag disposal and cement emissions. Watch durability data, SCM inclusion rates, and scale-up timelines. If pilots confirm strength and workability, demand from EU projects could ramp quickly.

US Releases Initial Antidumping Duty Rates on Ferro-Silicon Imports from Brazil, Malaysia, and Kazakhstan

FerroGlobe, Ferro-Silicon

The US Department of Commerce has announced the preliminary antidumping duty (AD) rates for ferro-silicon (FeSi) imports from Brazil, Malaysia, and Kazakhstan. The initial duty rates vary by country and producer, with most foreign entities falling below 10%, signaling a moderate level of protectionism against what is perceived as unfair pricing practices in the sector. These decisions come amid an ongoing investigation and could have significant implications for the US ferro-silicon industry.

Preliminary AD Rates for Brazilian, Malaysian, and Kazakh Ferro-Silicon Producers

The following initial AD rates have been determined:

1. Brazil:

• Minasligas: 1.18%
• Companhia de Ferro Ligas da Bahia (Ferbasa): 13.13%
• Ligas de Alumino: 21.78%
• "All others": 13.13%

2. Malaysia:

• OM Sarawak: 6.91%
• Pertama Ferralloys: 9.01%
• "All others": 7.84%

3. Kazakhstan:

• YDD, Asia Ferroalloys, and KazSilicon Metallurgical Combine: 4.22%
• TNC Kazchrome: 6.2%
• "All others": 4.67%

In addition to these AD rates, importers must pay cash deposit rates to the US Customs and Border Protection (CBP). For example, Brazilian importers will be required to pay rates ranging from 1.06% to 13.03% depending on the exporter. Notably, there are no cash deposit requirements for imports from Kazakhstan, further highlighting the complexity of the trade case.

Ongoing Investigation and Potential Impact on US Ferro-Silicon Industry

The Commerce Department’s final ruling is expected by May 17, with an injury determination scheduled from the US International Trade Commission (USITC) by April 29. This investigation is running concurrently with a countervailing duty (CVD) probe into the imports from these countries. The case initially arose from petitions filed by FerroGlobe's US subsidiary and CC Metals and Alloys, two key players in the US ferro-silicon industry, in response to perceived market distortions.

In 2023, shipments from Brazil, Malaysia, and Kazakhstan accounted for 77% (152,073 metric tonnes) of the total US ferro-silicon imports, making this investigation crucial for the local industry.

The outcome of this case will likely affect future imports and pricing dynamics in the US market, as well as the competitiveness of domestic ferro-silicon producers.

Explosion at Kazakh FeSi Plant Injures Eight Workers

On July 20, a furnace explosion at the YDD ferro-silicon and microsilica production plant in Karaganda injured eight workers, as reported by state-run newspaper Kazakhstanskaya Pravda and various sources. The explosion occurred in one of the plant's four operational furnaces. The extent to which the explosion has impacted production remains unclear.

Among the eight injured workers, six have been admitted to intensive care.

A commission has been established to investigate the cause of the incident. Authorities have also launched a criminal investigation into potential violations of labor production regulations.

YDD, which has a nameplate capacity of 240,000 t/yr of ferro-silicon, 10,000 t/yr of ferrosilicon slag, and 18,000 t/yr of microsilica, is not believed to have been operating at full capacity, according to trade data.

A European trader told Metalnomist that the explosion is unlikely to impact ferro-silicon prices or availability in Europe.

YDD is a relatively new player in the ferro-silicon industry. The company's first furnace began operations in mid-2019, and the fourth furnace was launched in 2022.

Ferroglobe silicon metal shipments slide as trade defenses set stage for 2026 rebound

Ferroglobe

Ferroglobe silicon metal shipments dropped sharply in the third quarter, but Ferroglobe silicon metal shipments could stabilise as trade defenses strengthen. The company expects US and EU protectionist measures to support Ferroglobe silicon metal shipments and prices from 2025 into 2026. As a result, the producer is positioning for a cyclical rebound after a year of weak demand and heavy import pressure.

Silicon and FeSi under pressure from weak demand and low-priced imports

Ferroglobe’s silicon metal shipments fell 41pc year on year in the third quarter to 33,561t as chemicals demand weakened. Average silicon metal prices dropped 13.3pc to $2,950/t, pressured by low-priced imports from third countries into the EU market. This combination of lower volumes and softer prices hit revenue and margins across its silicon portfolio.

Meanwhile, silicon-based alloy shipments slipped 5.5pc to 42,968t, reflecting reduced activity in steel and foundry sectors. Average selling prices for silicon-based alloys declined 3.9pc to $2,149/t, again under pressure from Asian imports into Europe. However, manganese-based alloys proved more resilient, with shipments rising 7.8pc to 69,552t and partially offsetting weakness in other segments.

European shutdown and trade protection reshape market outlook

Ferroglobe suspended all silicon metal production in Europe in October, citing an “urgent need” for EU trade measures. The decision highlights the strain facing European smelters exposed to high power costs and cheap imports. It also tightens regional supply, which could improve pricing power if safeguard measures take effect.

In the US, preliminary anti-dumping margins on silicon metal imports already support domestic producers. In the EU, a final decision on safeguard measures is due by 19 November and will be pivotal for market balance. If approved, these tools should reduce unfairly priced inflows and support a recovery in Ferroglobe silicon metal shipments and alloy utilization rates.

Looking ahead to a 2026 recovery cycle

Management acknowledges that current market conditions remain challenging, but guidance points to a more constructive backdrop from 2026. Trade defenses in the US and EU should gradually restore a more level playing field for integrated silicon producers. That will matter for Ferroglobe silicon metal shipments, which remain highly sensitive to both industrial demand and import price competition.

At the same time, any cyclical rebound in chemicals, steel and foundry sectors would lift alloy volumes and support margins. The firm’s diversified exposure to manganese-based alloys also provides some buffer during the silicon downturn. However, the timing and strength of recovery will depend on how quickly EU and US measures bite and how energy prices evolve.

The Metalnomist Commentary

Ferroglobe’s strategy now rests on regulatory tailwinds as much as on market fundamentals. If EU safeguards and US anti-dumping actions materialise as expected, European silicon pricing could reset higher from 2026. For downstream consumers, that would mean structurally tighter silicon availability and greater incentive to lock in long-term, de-risked supply.