Sakura Ferroalloys FeMn expansion accelerates sinter plant and converter investment in Malaysia

Sakura Ferroalloys

The Sakura Ferroalloys FeMn expansion marks a major upgrade of its Sarawak ferro-manganese operations. The company has opened a new sinter plant and started building a converter for refined FeMn products. As a result, the Sakura Ferroalloys FeMn expansion will improve raw material efficiency and diversify carbon grades for global steel customers.

The Sakura Ferroalloys FeMn expansion also reflects a strategic shift in ownership and technology. Assore now holds 54.36pc of Sakura Ferroalloys after acquiring Assmang’s stake in June. Meanwhile, ore from Assmang continues to feed the plant, while Sumitomo and JFE help secure international sales channels. Therefore, the Sakura Ferroalloys FeMn expansion combines South African ore, Japanese trading muscle and Asian steel demand.

New sinter plant boosts furnace stability and ore utilisation

The new sinter plant is central to Sakura’s plan to lift efficiency and stability. The 141mn ringgit facility, completed after 22 months, prepares more consistent feed for smelting. This consistency should improve furnace performance, energy efficiency and metallurgical recovery rates.

By sintering ore fines and optimising feed size, Sakura can use a broader range of manganese raw materials. This flexibility matters as ore quality varies across mines and market cycles. As a result, the sinter plant supports more stable high-carbon FeMn output from Sakura’s existing 250,000 t/yr capacity.

The project also underpins environmental and cost performance. Better furnace stability usually reduces specific energy consumption and slag generation. Therefore, the sinter plant strengthens Sakura’s competitiveness against other Asian and global FeMn suppliers. It helps secure long-term contracts with steel mills that demand reliable quality and delivery.

Project Salamander moves Sakura into refined ferro-manganese

Project Salamander is the second pillar of the Sakura Ferroalloys FeMn expansion. The 346.5mn ringgit converter project will produce medium-carbon and low-carbon ferro-manganese. These refined grades are essential for high-quality steel, including automotive, structural and special steels.

Construction is planned over 21 months, with hot commissioning targeted for April 2027. Full production ramp-up is expected by mid-2027, adding 70,000 t/yr of refined FeMn capacity. Meanwhile, high-carbon FeMn output will continue to serve bulk steel applications worldwide. This product diversification reflects evolving customer demand for tighter alloy specifications and cleaner steels.

JFE Mineral & Alloy’s acquisition of a 7.5pc stake in Sakura in July was a key enabler. The deal gives Sakura access to JFE’s refining technology and process expertise. Therefore, the Sakura Ferroalloys FeMn expansion is not only about hardware, but also about advanced know-how transfer. Over time, this should lift product quality, yield and margins across Sakura’s FeMn portfolio.

The Metalnomist Commentary

Sakura’s combined sinter and converter investments show how ferro-alloy producers move up the value chain under margin pressure. By pairing ore-flexible sintering with refined FeMn capability and Japanese technology, Sakura positions Sarawak as a regional ferro-manganese hub. Market participants should watch contract terms and utilisation after 2027, as these will signal how quickly higher-value FeMn displaces basic grades in Asian steelmaking.

Fastmarkets Ferroalloys Asia 2025 Positions Bangkok as Key Global Hub for Ferroalloy Trade

Fastmarkets Ferroalloys Asia 2025

India, China, and South Korea Showcase Market Strength as Global Players Tackle Tariffs and Sustainability Goals

The Fastmarkets Ferroalloys Asia Conference 2025 concluded in Bangkok with more than 800 global industry professionals in attendance. Held from April 8–10, this flagship event solidified its role as Asia’s largest ferroalloy trading platform, focusing on trade flows, tariffs, sustainability, and supply chain strategies.

This year’s conference drew key stakeholders from across the ferroalloy value chain. Attendees participated in active deal-making, high-level panels, and targeted networking—further reinforcing Asia’s position as the world’s dominant ferroalloy market.

Indian and Chinese Firms Expand Regional Influence Amid Tariff Pressures

Ferroalloy giants from India and China made a strong statement at the event. Companies such as BFCL, INDIANO, MORTX, BERRY ALLOYS, MTALX, and CCMA attended as sponsors. Their presence underlined a strategic shift to deepen market penetration in Asia while mitigating challenges from recent U.S. tariff policies.

By sponsoring the event, these companies emphasized regional alliances and adaptability to global trade shifts. With India and China playing leading roles in global ferroalloy production and exports, their efforts at Fastmarkets Asia 2025 signal a robust push for market resilience and growth.

Producing Ferro-Titanium in Korea

South Korea’s Dong-A Special Metal stood out by announcing its expansion in Ferro-Titanium and Ferro-Titanium Powder production. The company uses eco-friendly pretreatment methods to manufacture high-quality products, gaining attention as one of Korea’s few domestic Ferro-Titanium producers.

This development strengthens Korea’s presence in specialty ferroalloys and aligns with rising global demand for lightweight, corrosion-resistant alloys in aerospace and defense sectors.

Focus on Asia’s Role in a Changing Global Alloy Market

The conference underscored Asia’s growing dominance in ferroalloys, especially through China and India. Fastmarkets emphasized this trend, with expert panels addressing topics like supply chain optimization, carbon reduction, and long-term demand outlook. As trade dynamics evolve, Asia is becoming the central pivot for pricing and policy trends in the ferroalloy industry.

TheMetalnomist continues to track how international conferences like these shape global metal market strategies and investment priorities.

China Calcium-Silicon Production Restarts as Ningxia Shuntai Responds to Higher Prices

Ningxia Shuntai

China calcium-silicon production has started to recover after Ningxia Shuntai resumed output following several months of equipment maintenance. The company restarted production as calcium-silicon prices rebounded in early March, supported by lower inventories and renewed restocking from steel mills and cored-wire producers.

Ningxia Shuntai had started maintenance on 10 October 2025 because weak demand and thin margins made continued production less attractive. The restart shows how quickly ferroalloy producers can respond when prices improve and downstream buyers return to the market.

China calcium-silicon production remains constrained overall, despite Shuntai’s return. Output from the country’s six major alloy smelters is still expected to fall in January-March because several producers remain offline or under maintenance.

Higher Prices Encourage Shuntai to Resume Ferroalloy Output

Ningxia Shuntai restarted calcium-silicon production after market conditions improved in early March. Falling inventories helped lift prices, while downstream steel mills and cored-wire producers increased procurement.

Calcium-silicon is used in steelmaking as a deoxidizer, desulfurizer and inclusion modifier. It is also used in cored wire applications, making demand closely tied to steel production, alloy treatment and foundry activity.

The restart suggests that current price levels are now more workable for Shuntai. However, the broader market remains sensitive to margins because calcium-silicon production depends on electricity costs, raw material prices and downstream steel demand.

Production Suspensions Keep China’s Calcium-Silicon Supply Tight

China calcium-silicon production from the six major domestic smelters — Shenghua, Ketong, Shuntai, Shenyu, Yongfeng and Jiamin — is expected to reach 18,200t in January-March. That would be down 16% from 21,700t a year earlier.

The decline reflects production suspensions and maintenance at several producers. Inner Mongolia Shenyu Ferroalloys began maintenance on 1 March and is expected to cut output by about 2,600t before work ends on 1 May.

Jiamin Ferroalloys has remained offline since an explosion on 8 January 2023. Shaanxi Fugu Yongfeng Ferroalloys has also been offline since 30 April 2024 because of high spot inventories and weak margins.

These supply constraints could support prices if steel mill restocking continues. But if demand weakens again, producers may remain cautious about ramping output aggressively.

The Metalnomist Commentary

Shuntai’s restart shows that China’s calcium-silicon market is still driven by short-cycle margin decisions. The key question is whether steel mill restocking reflects real demand recovery or only inventory rebuilding after a period of tight supply.

Beneath the Growth: Ferro-Titanium(Fe-Ti) Market Enters Cooling Phase in 2025

Ferro-Titanium

Once a core beneficiary of aerospace and specialty steel demand, ferro-titanium now faces dual pressure from weakening demand and excess supply.

At the Foundation of Steel, Cracks Begin to Show

As of September 2025, leading market analysts still forecast a 4–5% annual growth rate for the ferro-titanium market, citing robust demand in aerospace, high-performance steels, and defense-grade alloys. But on the ground, reality paints a more sobering picture.

The global steel industry is struggling. A perfect storm of China’s low-cost exports, persistent weakness in downstream sectors, and U.S. tariff uncertainties has significantly dented confidence. Particularly hard hit are the automotive, shipbuilding, and plant engineering sectors, leading to a sharp decline in ferro-titanium consumption.

The result: a continued slide in spot prices, leaving suppliers grappling with margin pressure and inventory overhang.

Dual Shock: Demand Contraction Meets Supply Glut

Ferro-titanium is a specialty ferroalloy additive used in steelmaking to remove oxygen and nitrogen impurities, refine grain structure, and enhance both strength and corrosion resistance. It is indispensable in the production of titanium alloys for aerospace, stainless steels, and corrosion-resistant superalloys.

However, softening demand is now converging with a surge in cheap ilmenite and rutile feedstock imports, the ramp-up of new smelting capacity, and rising inventories, triggering a classic oversupply scenario. Some traders have resorted to panic selling, driving spot prices below long-term contract levels.

Not All Ferroalloys Are Created Equal

This downturn is not symptomatic of the entire ferroalloy market. While ferro-molybdenum (FeMo) prices are also under pressure due to steel sector weakness, the ferro-vanadium (FeV) market remains relatively buoyant—buoyed by growing demand for high-strength steel and new applications in energy storage technologies (e.g., vanadium redox flow batteries).

This divergence underscores a key truth:

Ferroalloy markets live or die by the uniqueness of their end-use demand.

Products that rely solely on steel cycles are inherently more volatile. In contrast, those with diverse, high-value downstream applications offer resilience—and in some cases, opportunity.

Long-Term Vision Intact, But Short-Term Survival Comes First

Industry experts agree:

"A meaningful rebound in ferro-titanium prices is unlikely until inventories normalize and downstream sectors recover."

Yet the long-term fundamentals remain intact. Demand from aerospace, defense-related high-performance steels, urban air mobility (UAM), and electric vehicles continues to build. Today’s correction may in fact be a strategic inflection point.

For producers with technological capabilities and diversified market access, this downturn could be a launchpad for future leadership. Moreover, as environmental regulations tighten, ferro-titanium producers with recycling-based production systems may gain a structural edge. In the long run, quality will matter more than quantity.

After all, ferro-titanium is essential for manufacturing materials that must not fail—only the strongest will do.

The Metalnomist Commentary

“This is not chaos. It is purification. Only the technologically armed will dominate the next cycle.”

The ferro-titanium market is undergoing a painful but necessary correction. But there is method in the madness. Suppliers rooted in high-value end markets, with a reputation for premium quality and the ability to serve global niches, will emerge as the next leaders.

This is a time for endurance. And in metals, quality is always the final destination.

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.

Assmang Cato Ridge FeMn smelter closure reshapes South Africa’s manganese alloys

US Brimstone

The Cato Ridge FeMn smelter closure marks Assmang’s permanent exit from ferro-manganese production. ARM is restructuring its manganese alloy portfolio after heavy losses. Assmang will shut the Cato Ridge Works following a Section 189 process. All employees will be retrenched by 31 August.

Restructuring details and asset sales

Assmang will sell Cato Ridge properties to Assore for R453mn. It will also sell its Sakura Ferroalloys stake to Assore. Once closed, Assmang will distribute R900mn to ARM. Therefore, ARM crystallizes value while exiting loss-making alloy exposure.

Market implications for South African manganese

The Cato Ridge FeMn smelter closure reflects South Africa’s escalating cost pressures. High power tariffs and logistics constraints erode alloy competitiveness. As a result, selling manganese ore increasingly outperforms alloy conversion. The closure leaves one remaining manganese alloy producer in South Africa.

Downstream users should prepare for tighter high-carbon FeMn availability from South Africa. However, global supply remains supported by Asia and the CIS. Contract buyers may seek diversified sources or renegotiate premiums. Meanwhile, the Cato Ridge FeMn smelter closure may shift trade flows.

The Metalnomist Commentary

This shutdown ends a chapter in South Africa’s alloy beneficiation and concentrates risk in one producer. Watch Eskom tariffs, rail reliability, and Asian alloy capacity for the next price signal. Offtake renegotiations and premium adjustments are likely through year-end.

US Ferro-Silicon Case Sparks Multiple Appeals

Ferro-Silicon

Domestic Producers and Malaysian Exporters Contest Trade Rulings

US ferro-silicon producers have formally appealed the US Commerce Department’s final determinations on imports from Malaysia, launching proceedings with the US Court of International Trade (USCIT). Attorneys for Ferroglobe’s US unit and CC Metals & Alloys filed a summons on 20 June, following Commerce’s March ruling that Malaysian ferro-silicon was sold at less-than-fair value. The US International Trade Commission (USITC) upheld the decision in May, supporting anti-dumping (AD) and countervailing duty (CVD) measures.

At the same time, Commerce and the USITC ruled that “critical circumstances” did not apply, meaning Malaysian shipments during the investigation were exempt from retroactive duties. Producers have 30 days from filing to detail grievances, potentially targeting either the duty rates or the negative finding on critical circumstances.

Malaysian Producers Challenge CVD Rates

Meanwhile, Malaysian producer OM Materials has also appealed, contesting the CVD rate set by Commerce. OM’s final AD and deposit rates were adjusted to 5.10pc and 4.66pc, with a CVD rate of 2.78pc. Pertama Ferroalloys, another Malaysian producer, faced significantly higher penalties of 42.88pc for AD and 42.60pc for deposits, along with a 3.48pc CVD rate.

From May-August 2024, Malaysia supplied 11,532 metric tonnes of ferro-silicon, about 17pc of total US imports. Since then, shipments from Malaysia have stopped, according to Commerce data through April.

The Metalnomist Commentary

These appeals highlight the growing tension in ferro-silicon trade, where both US producers and Malaysian exporters are contesting outcomes. While domestic firms seek stronger protection, exporters aim to reduce penalties. The USCIT’s eventual rulings could shape future ferroalloy trade flows and influence supply stability in the US market.

Indonesia Nickel Export Rule Creates New Uncertainty for Global Supply

Indonesia Nickel mining

Indonesia nickel export rule changes have created fresh uncertainty in the nickel market as Jakarta moves to centralise key commodity exports through state-owned enterprises. Market participants are now waiting for clearer details on scope, pricing and implementation.

Indonesia nickel export rule plans were announced by president Prabowo Subianto on 20 May. The policy will require exports of key commodities to be routed through a state-owned enterprise, or BUMN, which would act as the sole counterparty to overseas buyers.

Indonesia nickel export rule uncertainty matters because the country is the world’s dominant nickel producer, accounting for more than 60% of global supply. Most of that output is nickel pig iron, a ferroalloy used mainly in stainless steelmaking.

The policy will initially target palm oil, coal and ferrous alloys. Nickel pig iron is expected to fall under the rule because it is a ferroalloy, although other nickel products have not yet been explicitly included.

Nickel Pig Iron Trade Faces Centralisation Risk

Nickel pig iron is central to Indonesia’s nickel position. It is a lower-cost nickel-bearing feedstock for stainless steel production, but it cannot be used directly in batteries.

To enter the battery chain, NPI must first be converted into nickel matte and then processed further into nickel sulphate for cathode manufacturing. This means any disruption to NPI flows can affect stainless steel first, but may also influence battery-related nickel routes over time.

Indonesia has already used centralised systems for other commodities. Tin exports must be traded through official domestic exchanges, such as ICDX or JFX.

The new system would go further by placing a state-owned enterprise at the centre of export contracts, transactions and payment flows. From June to August, exporters are expected to gradually transfer these functions to BUMN. From September, all export transactions are expected to move fully through the state-owned structure.

Market participants are sceptical about the timeline. Many believe implementation from 1 June is too early because the policy still appears under preparation.

The lack of broad industry consultation has also increased concern. Traders say Jakarta consulted only a limited number of stakeholders before announcing the policy, contributing to confusion and weak market confidence.

Pricing and Product Scope Remain Unclear

The main uncertainty is scope. Ferroalloys are expected to be covered, but other nickel products have not been clearly defined. Many participants expect the policy to eventually expand across more nickel products.

Pricing is another major question. Buyers and sellers do not yet know whether export prices will be set by BUMN or negotiated commercially between counterparties.

A separate pricing framework may be introduced, but details are still missing. This matters because Indonesia’s nickel market already faces policy-driven cost changes, including ore pricing formula updates and royalty uncertainty.

The new export rule could tighten supply conditions if it slows contracting, complicates payments or reduces flexibility for private exporters. Even if physical output remains unchanged, transaction friction can affect availability.

The market reaction has so far been cautious rather than dramatic. Indonesia’s Jakarta Composite Index fell, while LME nickel showed only limited movement after the announcement.

However, the longer-term implication is more significant. Indonesia is moving toward stronger state control over strategic natural resource flows.

For nickel buyers, this means procurement risk is no longer only about mine quotas, ore grades or processing costs. It now includes export governance, state counterparty risk and policy timing.

The Metalnomist Commentary

Indonesia is turning nickel from a commodity export into a managed strategic resource. The rule may support state control, but poor implementation could disrupt the very downstream supply chain Jakarta has worked so hard to build.

Eramet's Nickel Production Faces Mixed Results in Second Quarter

In the second quarter, French mining giant Eramet experienced mixed results in its nickel and nickel ore production, with notable differences between its operations in Indonesia and New Caledonia. Improved productivity led to a rise in output at Weda Bay, Indonesia, while socio-political disturbances in New Caledonia caused significant declines.

Eramet's high-grade nickel ore production at Weda Bay surged by 56% to 5.913 million tonnes in the second quarter, maintaining the same growth rate in the first half of the year with a total production of 12.255 million tonnes. This increase was driven by an effective mining plan that improved the grade of marketable ore and enhanced inventory management.

Conversely, the production of low-grade nickel ferroalloys fell by 17% to 6,600 tonnes in nickel metal content, with a January-June output decline of 11% to 14,000 tonnes. This reduction was due to slowed production from one furnace in the first quarter and scheduled maintenance during the second quarter.

In New Caledonia, Eramet's subsidiary, Societe Le Nickel (SLN), saw a dramatic 73% year-on-year decline in nickel ore production to 389,000 tonnes in the second quarter. This was caused by a halt in mine production across the French-controlled territory due to safety concerns following violent outbreaks that damaged buildings and infrastructure, particularly affecting the Thio and Kouaoua sites. SLN's first-half ore output fell by more than half to 1.403 million tonnes.

Ferronickel production at SLN also dropped by 14% year-on-year in the first half of the year to 17,400 tonnes, hindered by reduced activities at the Doniambo plant. Violence in New Caledonia created difficulties in transporting nickel ore and other essential inputs to the plant.

Due to these challenges, Eramet revised its 2024 external ore sales target from 42 million wet metric tonnes (wmt) to 40 million wmt, as the government did not grant the permit for low-grade saprolite sales.

SLN's financial situation in New Caledonia remains "extremely critical," with most mines suspended since mid-April and the Doniambo plant operating on minimal technical power. Eramet has decided not to provide further financing to SLN but continues to support its operations. In line with an agreement signed in April between Eramet and the French government, France issued €80 million in funding to SLN in July, providing essential support for its ongoing operations.