EU Ferro-Silicon Prices Slide as Safeguard Quotas Remain Open

Ferro-Silicon

EU ferro-silicon prices have weakened since safeguard quotas renewed in May, as abundant low-priced inventory in European warehouses reduces the need for fresh imports. Prices have fallen by 3.6% since the third safeguard period began on 18 May.

EU ferro-silicon prices were last assessed at €1,240-1,280/t delivered northwest Europe, remaining rangebound for three weeks as spot trading stayed subdued.

EU ferro-silicon prices are being held down by material imported before safeguards were introduced in November 2025. Traders continue to hold significant volumes in storage while waiting for tighter quota availability to support higher prices.

The market could tighten later in the year, but weak steel demand and the seasonal July-August slowdown are expected to limit immediate upward momentum.

Warehouse Stocks Delay the Impact of EU Safeguards

The EU safeguard system has not yet generated the price response seen in some other ferro-alloys because major ferro-silicon import quotas remain available.

Smaller allocations for countries including Brazil and the broader "other countries" category have filled, but larger quotas for Norway and Iceland remain open.

This gives buyers access to imported ferro-silicon without immediately facing punitive out-of-quota costs.

At the same time, low-cost inventory imported before the safeguard regime remains available inside Europe. These stocks reduce urgency among steelmakers and traders to secure new material.

Some suppliers have responded by withdrawing offers rather than selling at current levels. They expect prices to strengthen once quotas fill and warehouse stocks decline.

The risk for buyers is that this adjustment could happen quickly. Once quotas are exhausted, the minimum import price for ferro-silicon is set at €2,408/t.

That level is almost twice current spot prices and significantly above the €1,392/t minimum import price applied to silico-manganese.

Importers therefore face substantial downside risk if they bring in material outside quota without a corresponding increase in European market prices.

This could encourage buyers to secure lower-cost ferro-silicon before quota utilisation increases further.

Silicon Metal Emerges as a Competitive Substitute

Silicon metal is becoming a more attractive alternative for some ferro-silicon consumers seeking to avoid potential safeguard-driven price increases.

Both products can provide elemental silicon in metallurgical applications, although substitution depends on process requirements and chemistry.

Lower-cost silicon metal imports from Angola and China have increased the economic incentive to consider alternative feedstock.

This creates an unintended competitive challenge for European ferro-silicon producers. Silicon metal was examined during the safeguard investigation but was ultimately excluded from the measures.

Historically, silicon metal traded at a substantial premium to ferro-silicon. That premium has narrowed since 2022, making substitution more economically realistic.

If ferro-silicon quotas eventually fill and import costs rise sharply, the relative attractiveness of silicon metal could increase further.

The safeguard mechanism could therefore support European ferro-silicon prices while simultaneously encouraging some consumers to reduce ferro-silicon usage.

Weak steel demand remains the larger constraint. Without stronger consumption, higher import protection may improve producer pricing power but cannot guarantee higher physical sales volumes.

The Metalnomist Commentary

Europe’s ferro-silicon safeguards have not tightened the market yet because old inventory and unused quotas remain substantial. The bigger risk for producers is that a sharp safeguard-driven price increase could accelerate substitution toward silicon metal instead of simply lifting ferro-silicon margins.

Ferroglobe Silicon Shipments Fall as European Plants Face Import Pressure

Ferroglobe

Ferroglobe silicon shipments fell in the first quarter after the company suspended production across its European silicon metal plants in October. The decline shows how weak demand and low-priced imports are reshaping Europe’s silicon metal market.

Ferroglobe silicon shipments dropped by 15.9% year on year to 30,533t in January-March. The company later restarted one of two furnaces at its Anglefort plant in France to maintain an EU operating presence.

Ferroglobe silicon shipments remain under pressure because European production costs are still struggling to compete against lower-cost third-country imports. The company warned that the current market structure is no longer viable during a prolonged period of depressed demand.

The issue is strategically important because silicon metal supports aluminium alloys, silicones, solar materials, semiconductors and industrial chemicals. If European smelting capacity continues to close, the region’s downstream industries will become more dependent on imported feedstock.

European Silicon Metal Faces Low-Cost Import Pressure

Ferroglobe said the European silicon metal market remains under pressure from China and Angola. Angola has emerged as a faster-growing supplier into the EU, increasing its market share during the first two months of 2026.

Angola supplied 993t of silicon metal to the EU in February, up by around two-thirds from a year earlier. Its EU market share more than doubled to 3.3% in January-February from 1.5% a year earlier.

This matters because even modest import share gains can influence pricing when demand is weak. European producers with higher energy and operating costs have limited room to absorb lower selling prices.

Ferroglobe has called for the EU to introduce anti-dumping duties on certain third-country suppliers selling at low prices into the bloc. The company made the request after the European Commission excluded silicon metal from last year’s safeguard investigation.

The policy question is now becoming more urgent. Europe wants strategic materials security, but it also needs trade tools that keep domestic production viable when imports undercut regional cost structures.

Without stronger protection or demand recovery, European silicon metal output could remain constrained. That would weaken the region’s ability to support aluminium, chemicals, solar and advanced manufacturing supply chains from local feedstock.

Ferro-Alloy Sales Offset Silicon Weakness

Ferroglobe’s broader first-quarter performance was supported by stronger silicon-based and manganese-based alloy shipments. This helped offset weaker silicon metal volumes.

Shipments of silicon-based alloys rose by 41.6% year on year to 60,674t. The increase was driven by stronger US demand for ferro-silicon.

However, average selling prices for silicon-based alloys fell by 4.9% to $2,016/t. Competitive conditions in the US and South Africa limited pricing power despite stronger volumes.

Manganese-based alloy sales also improved sharply. Shipments rose by 27.5% to 85,743t, supported by recently implemented safeguard measures.

The average selling price for manganese-based alloys increased by 12.8% to $1,250/t because of higher European prices. This shows how trade measures can directly support pricing when regional supply protection is in place.

Ferroglobe’s total sales rose by 13.2% year on year to $347.7mn. The increase came from higher silicon-based and manganese-based alloy volumes, along with stronger manganese alloy pricing.

Adjusted earnings before interest, taxes, depreciation and amortisation increased by 112.5% to $3.3mn. The improvement was meaningful, but margins remain thin for a company operating in volatile alloy and silicon markets.

The company is also considering reopening operations in Venezuela. Those assets are close to the US market and could benefit from low-cost energy, raw materials and favourable logistics.

That strategy reflects the changing economics of ferro-alloy and silicon production. Energy cost, trade access, import protection and proximity to customers are becoming more important than legacy European capacity alone.

The Metalnomist Commentary

Ferroglobe’s results show that Europe’s silicon metal problem is not only weak demand; it is structural cost exposure against lower-priced imports. If the EU wants domestic critical industrial material capacity, silicon metal may need the same policy seriousness now being applied to batteries, magnets and semiconductors.

Hoshine Silicon Output Falls as China Photovoltaic Demand Slows

Hoshine

Hoshine silicon output fell sharply in 2025 as weaker photovoltaic demand weighed on China’s largest silicon metal producer. The company produced around 1.45mn t of silicon metal during the year, down 22.3% from 2024.

Hoshine silicon output declined as downstream polysilicon and photovoltaic markets lost momentum. Sales also fell by 10.1% on the year to 1.11mn t, reflecting softer consumption from key solar supply-chain customers.

Hoshine silicon output remains important because the company is a major force in China’s silicon metal market. Its production trends provide a clear signal for supply conditions across aluminium alloys, organosilicon, polysilicon and photovoltaic materials.

China’s wider silicon metal production also weakened. National output fell by 11% on the year to around 4.20mn t in 2025, showing that the slowdown was not limited to one producer.

Polysilicon Weakness Hits Silicon Metal Demand

Polysilicon production fell sharply in 2025, reducing one of the key demand channels for silicon metal. China produced around 1.33mn t of polysilicon during the year, down 27.8% from 2024.

This decline reflects pressure across the solar manufacturing chain. Photovoltaic growth continued, but the pace slowed compared with the previous year.

China’s newly installed photovoltaic capacity reached around 31.7GW in 2025, up 14% from a year earlier. However, this was well below the 28% growth recorded in 2024.

That slowdown matters for silicon producers. Silicon metal is a critical feedstock for polysilicon, which is then used in solar wafers, cells and modules.

When polysilicon output falls, demand for silicon metal weakens quickly. Producers then face lower sales, inventory pressure and weaker pricing power.

Hoshine’s 2025 results show how tightly silicon metal is linked to solar-sector cycles. Even large producers with scale advantages are exposed when downstream photovoltaic demand slows.

Capacity Remains Large Despite Softer Market Conditions

Hoshine still operated at high capacity utilisation despite lower output. The company has 1.22mn t/yr of designed silicon metal capacity, with utilisation reaching 119.2% in 2025.

This indicates that Hoshine continued producing above nameplate capacity, even as output fell from the previous year. The company remains a dominant supplier in China’s silicon metal market.

Hoshine also had 1.73mn t/yr of designed organosilicon capacity by the end of 2025. Organosilicon remains another major downstream channel for silicon metal, serving construction, electronics, automotive, industrial and consumer applications.

The company also had 50,000 t/yr of polysilicon capacity and a further 350,000 t/yr under construction. This shows that Hoshine is still investing in downstream integration despite short-term market weakness.

The expansion strategy carries both opportunity and risk. Integrated silicon-to-polysilicon capacity can improve value capture when solar demand recovers. However, it can also increase exposure to oversupply if polysilicon markets remain weak.

For China’s silicon industry, the key issue is balance. Producers must manage large capacity bases while downstream photovoltaic growth becomes less explosive than in previous years.

The Metalnomist Commentary

Hoshine’s lower silicon output shows that solar-sector growth is no longer strong enough to absorb every upstream expansion. China’s silicon market now faces a more selective phase where cost control, downstream integration and demand timing will determine profitability.

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.

Elkem’s Ferro-Silicon Production Set to Drop Amid Weak 4Q Sales

Elkem

Elkem reduces production after weak sales and muted demand for silicon and ferro-silicon products.

Norwegian silicon and ferro-alloy producer Elkem is set to cut back its ferro-silicon production in the first quarter of 2025. This decision follows a significant drop in silicon product sales during the fourth quarter of 2024. Elkem’s operations have been under pressure due to weaker demand and lower prices, particularly in the ferro-silicon and silicon markets.

Production Challenges and Maintenance Disruptions

The reduction in production is largely driven by scheduled maintenance at Elkem’s Norwegian facilities and power constraints at its Iceland-based Hvalfjordur plant. These issues have already led to a 30% decrease in production at the Hvalfjordur plant since January. The plant, which has a production capacity of 120,000 tonnes per year, will likely see continued production constraints in the first quarter.

Decline in Sales and Weak Market Conditions

Elkem’s silicon products division, which includes silicon metal and ferro-silicon, saw a 19% decrease in sales during the fourth quarter of 2024, reaching 98,000 tonnes. This decline was a reflection of weak market conditions, with demand for silicon and ferro-silicon remaining subdued. Furthermore, prices in China hit new lows due to oversupply and a downturn in the polysilicon market. Although prices in Europe remained more stable, they were still relatively low throughout the quarter.

Financial Performance and Strategic Adjustments

Despite the challenges in its silicon products division, Elkem saw a significant improvement in its overall earnings before interest, taxes, depreciation, and amortisation (EBITDA), which totaled 1.16 billion kroner ($102.85 million) for Q4 2024. This represents a marked increase from the previous year’s 632 million kroner, driven by operational improvements and a successful capex reduction program. However, the EBITDA for the silicon products division fell by 24%, marking a 13.3% decrease in full-year 2024 EBITDA compared to 2023.

In light of these challenges, Elkem is considering divesting its silicones division. This move would allow the company to focus on expanding its silicon products and carbon solutions divisions, aiming for more robust growth in these areas.

Conclusion

Elkem’s decision to reduce ferro-silicon production is a direct response to weak demand and operational issues in early 2025. The company’s strategic adjustments, including a potential divestment of its silicones division, aim to position it for future growth in the silicon and carbon solutions markets, which could be key to sustaining long-term profitability.

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.

Elkem Restructuring Targets Cost Control as Silicon Market Weakens

Elkem

Elkem restructuring is becoming a major response to weaker market conditions after the Norwegian metals group completed the sale of its silicones division. The company will now operate through three divisions: Elkem Silicon, Elkem Foundry Alloys, and Elkem Carbon. The move marks a sharper focus on core materials businesses as silicon and ferro-silicon markets remain under pressure.

Elkem restructuring also comes with a significant cost-cutting programme. The company plans to reduce its total workforce by 10% and improve working capital and capital expenditure by Nkr1.3 billion, or about $135 million. Salary and operating cost reductions are expected to generate annual savings of Nkr600 million, while investment will be capped at Nkr1 billion this year.

Elkem restructuring reflects the pressure now facing energy-intensive metals producers in Europe. High inventories, weak demand visibility, and elevated energy costs have already forced the company to temporarily reduce silicon and ferro-silicon production at its Salten and Rana plants in Norway.

Silicon and Ferro-Silicon Markets Pressure Elkem’s Core Operations

Elkem’s latest restructuring follows a sharp earnings decline in its continuing operations. Excluding the divested silicones division, the company recorded fourth-quarter 2025 earnings of Nkr485 million, down by almost 40% from a year earlier. That result shows how quickly weaker demand can affect upstream and intermediate materials businesses.

The company’s silicon and ferro-silicon operations are especially exposed to industrial cycles. These products serve aluminium alloys, foundries, chemicals, steelmaking, and other manufacturing value chains. When customer demand slows or inventories rise, producers face direct pressure on operating rates and margins.

Elkem’s temporary production reductions in Norway underline this challenge. Silicon and ferro-silicon production depends heavily on reliable and competitive power costs. In a weak market, high energy costs can quickly turn capacity utilization into a margin risk rather than a volume advantage.

Cost Cuts Aim to Preserve Competitiveness Until Demand Recovers

Elkem’s cost-cutting programme is designed to preserve financial flexibility until market conditions improve. Chief executive Helge Aasen said the measures should position the company to deliver long-term value for customers, employees, and stakeholders once the market recovers.

However, the outlook remains uncertain. Elkem said the conflict in the Middle East has increased macroeconomic uncertainty and affected value chains for many of its customers. The company now expects the first half of 2026 to be weaker than previously expected, with limited visibility.

The restructuring also signals a broader trend across European metals and materials companies. Producers are narrowing portfolios, reducing fixed costs, and protecting cash as demand from downstream industries becomes harder to forecast. For Elkem, the sale of silicones and the renewed focus on silicon, foundry alloys, and carbon products create a leaner structure, but the company still depends on a recovery in industrial demand.

The Metalnomist Commentary

Elkem’s restructuring shows how energy-intensive metals producers are moving from expansion logic to survival discipline. The key question is whether cost cuts can protect competitiveness long enough for silicon and ferro-silicon demand to recover.

REC Silicon Adjusts Polysilicon Inventory Goals Amid Market Challenges

REC Silicon

Norway-based REC Silicon has revised its goal for clearing its inventory of semiconductor-grade polysilicon. Originally aiming to clear it by the end of 2024, the company now expects to meet this target by mid-2025 due to low demand in the market. As part of its shift to focus on silicon gas production, REC has been adjusting its production strategies, including halting polysilicon production at certain facilities.

Shifting Focus to Silicon Gas Production

REC Silicon, which produced semiconductor-grade polysilicon in Butte, Montana, and solar-grade polysilicon in Moses Lake, Washington, faced challenges that led to the closure of its Butte plant in mid-2024. High electricity costs and weak semiconductor demand were the primary drivers behind this decision. Additionally, REC ceased production at its Moses Lake facility due to the difficulty of achieving the high purity required for polysilicon used in solar cells. As a result, the company is transitioning to focus exclusively on silicon gases, which are essential for semiconductor and solar panel manufacturing.

The long-term strategy for REC involves increasing its supply of silicon gases to semiconductor manufacturers, with a notable projection for US semiconductor production to double between 2022 and 2032. The company is also expanding its role in the solar industry, as domestic solar cell manufacturing capacity is expected to increase by 1,300% over the coming years.

New Opportunities in Silicon Battery Anodes

In a major strategic shift, REC Silicon plans to start supplying silicon gases to Sila Technologies, a company that produces silicon battery anodes, in the second half of 2025. This partnership will be a significant part of REC's new focus on silicon gases, as the company is currently in discussions with six other silicon battery anode manufacturers. As electric vehicle production continues to grow, carmakers are seeking alternatives to traditional lithium-ion batteries with graphite anodes.

The Butte plant is equipped to produce 7,400 tons per year of silane and other silicon gases, while the Moses Lake facility could reach a production capacity of 24,000 tons per year. The company is keeping the Moses Lake facility operational to ramp up production when market conditions improve.

PCC Q3 silicon sales plummet after BakkiSilicon halts output and seeks trade relief

PCC Bakky Silicon

PCC Q3 silicon sales plummet because PCC BakkiSilicon stopped silicon production on 20 July in Iceland. PCC Q3 silicon sales plummet as the group prioritizes cost cuts and restart conditions. Meanwhile, PCC Q3 silicon sales plummet as the company pushes for silicon metal safeguards.

Sales fell sharply for the silicon and derivatives segment inside PCC Group. Third-quarter revenue dropped to €9.2 million from €22.9 million a year earlier. January–September sales also fell to €36.6 million from €66.9 million in 2024. Therefore, the shutdown immediately hit volumes and cash generation.

Cost cuts narrow losses, but layoffs deepen the reset

EBITDA losses narrowed because the company reduced spending during the shutdown. The segment posted an EBITDA loss of €8.4 million in Q3, versus €11.5 million last year. PCC cut 80 roles after the suspension and reduced headcount again in Q3. However, the workforce actions underline how difficult the current cost base remains.

Silicon metal safeguards disappoint as import reviews continue

PCC backed EU safeguards on silicon metal, but the draft proposal raised complications. The European Commission proposal notified to the World Trade Organization on 12 November did not include silicon metal. Iceland would also face measures under that framework. Therefore, PCC also initiated an import tariff review in Iceland during Q3.

PCC says the pressure spans the EU region, not only Iceland. It claims all silicon factories in the European Union have temporarily closed for similar reasons. Meanwhile, high power costs and weak demand keep margins negative across Europe. As a result, restart decisions will hinge on energy relief and credible trade defenses.

The Metalnomist Commentary

European silicon metal will not restart at scale without predictable power pricing. Meanwhile, trade tools must protect Europe without penalizing adjacent producers like Iceland. Therefore, buyers should diversify sourcing and lock flexible contracts through 2026.

STMicro targets new sources of silicon chip demand

STMicro

STMicro is betting on new sources of silicon chip demand from AI data centres and advanced EV platforms. The company sees silicon and silicon carbide (SiC) devices as core growth engines, even as it trims some near-term capital spending. As a result, STMicro is repositioning its portfolio toward photonics, high-voltage power electronics and next-generation vehicle systems that can unlock new sources of silicon chip demand across several end markets.

Photonics and AI servers anchor new sources of silicon chip demand

STMicro is using silicon photonics to capture new sources of silicon chip demand from hyperscale AI data centres. In the third quarter, the firm reported rising orders for silicon photonics integrated circuit prototypes from its 300mm fabs. This confirms internal expectations that photonics ICs will become a meaningful revenue driver as AI server build-outs accelerate worldwide.

Meanwhile, the company is tightening its integration into the AI infrastructure ecosystem through the Starlight Consortium. The consortium connects substrate suppliers, device makers and system integrators to develop high-speed optical solutions for data centres, telecoms and automotive. In parallel, STMicro is collaborating with Nvidia on an 800V DC AI data centre architecture that combines SiC, gallium nitride (GaN) and silicon technologies. The firm has also demonstrated a GaN prototype with over 98pc conversion efficiency, underscoring how power density and efficiency now drive silicon chip demand as much as raw compute.

SiC, EV power electronics and a more selective capex strategy

STMicro is broadening SiC usage beyond traction inverters and onboard chargers to new power roles in active suspension inverters. This expands the addressable market in EVs just as advanced driver-assistance systems increase demand for sensors and control chips. However, weaker-than-expected EV programmes in Europe and China have delayed the full impact, forcing the company’s main automotive customer to cut orders.

Therefore STMicro is trimming near-term SiC capex as it transitions production from 150mm to 200mm wafers. The company will slow some investments in SiC conversion while maintaining its 300mm expansion plans in Agrate, Italy, and Crolles, France. These fabs continue to see solid order visibility, particularly for data-centre power modules and optical components. STMicro expects EV growth and SiC restocking to resume in 2026, once inventory drawdowns run their course and regional electrification policies translate into firmer demand.

The Metalnomist Commentary

STMicro’s push into photonics and SiC power devices shows how new sources of silicon chip demand are shifting toward AI infrastructure and complex EV systems. For the wider materials chain, this means sustained pull for high-purity silicon, SiC substrates and GaN epitaxy, even if near-term EV softness delays some projects. Suppliers that align with 300mm and 200mm wafer roadmaps and can support AI-class power densities will be best positioned as these new demand waves crystallise from 2026 onward.

TI Silicon Labs Acquisition Signals a Bigger Push in US Semiconductor Reshoring

Texas Instruments

The TI Silicon Labs acquisition marks a major move in the US semiconductor sector. Texas Instruments plans to acquire Silicon Labs in a deal worth about $7.5bn. The transaction would add a large wireless connectivity portfolio to TI’s business. As a result, the TI Silicon Labs acquisition could strengthen both product scale and domestic manufacturing control.

This deal matters because Silicon Labs brings around 1,200 embedded wireless connectivity products. Those products fit closely with TI’s broader semiconductor footprint. Management said the portfolio integrates well with TI’s manufacturing strategy. Therefore, the TI Silicon Labs acquisition looks like a capacity and product expansion move at the same time.

The industrial message is also clear. TI plans to reshore Silicon Labs manufacturing from overseas foundries. That gives the company more direct control over production, supply security, and long-term cost structure. Consequently, the TI Silicon Labs acquisition supports a wider US semiconductor reshoring trend.

US Semiconductor Reshoring Gains More Strategic Weight

US semiconductor reshoring is becoming a bigger part of TI’s long-term strategy. The company already operates three 300mm wafer fabs in the United States. Two are in Texas and one is in Utah. As a result, TI has a strong domestic production base to absorb future expansion.

The company is also planning more capacity. TI intends to build two additional 300mm fabs in Texas under its $60bn domestic investment plan. That means the Silicon Labs acquisition would sit inside a much larger manufacturing agenda. Therefore, US semiconductor reshoring is not a side theme here. It is central to the deal’s logic.

This matters for supply chains as well. Companies want more stable access to chips used in communications, industrial systems, and connected devices. Domestic manufacturing offers better visibility during geopolitical or logistics disruption. Meanwhile, reshoring can improve alignment between product design and production strategy.

300mm Wafer Fabs and Wireless Products Create a Stronger TI Platform

300mm wafer fabs give TI a meaningful advantage in scale and manufacturing efficiency. Adding Silicon Labs could let TI connect that production strength with a deeper wireless product offering. That combination could be especially valuable in industrial and embedded markets. Consequently, the TI Silicon Labs acquisition may improve both reach and operating leverage.

The transaction structure also shows confidence. TI expects to fund the deal with cash and debt financing. The companies expect the acquisition to close in the first half of 2027, subject to shareholder approval. Therefore, the market now has a clearer timeline for how this strategy may unfold.

The broader takeaway is important. This is not only a portfolio expansion. It is also a bet that domestic semiconductor manufacturing and wireless connectivity will matter more together in the years ahead. As a result, the TI Silicon Labs acquisition may become a notable example of how product strategy and reshoring strategy are starting to merge.

The Metalnomist Commentary

This deal stands out because it combines technology breadth with manufacturing intent. TI is not just buying wireless products. It is using the acquisition to reinforce a longer-term US semiconductor reshoring strategy built around scale, control, and domestic capacity.

NBVL Ferro-Silicon Output Surges 480% on Strong Export Demand

NBVL

NBVL ferro-silicon output achieved remarkable growth with production reaching 13,490 tonnes in FY2025, compared to just 2,380 tonnes the previous year. The Indian ferro-alloy producer's NBVL ferro-silicon production increase of nearly six times reflects strong international orders, particularly from the US market, amid challenging domestic conditions and oversupply pressures.

Strategic Furnace Conversion Drives Production Expansion

NBVL ferro-silicon production capacity expanded through strategic infrastructure investments beginning in January 2024. The company launched its first ferro-silicon furnace with 11,000 tonnes annual capacity, followed by a second furnace in December 2024. However, the second furnace switched back to silico-manganese production on May 1, 2025, following the US imposition of additional 10% tariffs on ferro-silicon imports.

Meanwhile, the furnace conversion strategy impacted silico-manganese production at NBVL's Paloncha operations. Silico-manganese output decreased 4.4% to 25,617 tonnes in Q4 FY2025 as two furnaces were temporarily converted to ferro-silicon production. Total silico-manganese production fell slightly to just under 104,200 tonnes for the full financial year.

Export Focus Delivers Revenue Growth Despite Market Challenges

However, NBVL's export-oriented strategy proved successful despite domestic market headwinds and international trade tensions. Export sales constituted 40% of total sales during FY2025, with the majority of ferro-silicon shipments destined for US markets. Combined silico-manganese and ferro-silicon sales reached 42,327 tonnes in Q4, significantly higher than 20,068 tonnes in the previous quarter.

Therefore, the company's strategic pivot toward international markets generated improved revenue and profitability metrics. NBVL management indicated expectations for better performance in FY2026 while targeting Japanese markets rather than domestic or other international destinations. This geographic diversification strategy aims to reduce dependence on tariff-affected US ferro-silicon trade.

Market Conditions Shape Future Investment Strategy

Furthermore, NBVL management expressed caution about domestic expansion plans citing existing oversupply conditions in India's ferro-alloy market. The company indicated it would consider expansion only after securing dedicated raw material sources to ensure competitive cost structures. This conservative approach reflects broader industry challenges including volatile raw material prices and intense competition.

As a result, the US tariff implementation on ferro-silicon products demonstrates how trade policies directly influence production decisions and market strategies. NBVL's quick response in switching the second furnace back to silico-manganese production illustrates operational flexibility in navigating changing trade conditions while maintaining export competitiveness.

The Metalnomist Commentary

NBVL's dramatic ferro-silicon output expansion exemplifies how Indian ferro-alloy producers leverage export opportunities to offset domestic market weakness, though trade policy changes require rapid operational adjustments. The company's strategic furnace switching capabilities demonstrate the importance of production flexibility in navigating volatile international trade conditions that increasingly characterize global ferro-alloy markets.

China's Ferro-Silicon Exports See Growth in 2024 Amid Lower Domestic Prices

China’s Ferro-Silicon

Increased Overseas Demand Drives Export Surge for Ferro-Silicon in China

China’s ferro-silicon exports experienced a significant rise in 2024, driven by increased overseas demand and a decline in domestic prices. According to customs data, China exported 405,089 tonnes of ferro-silicon in 2024, marking a 6.8% increase from the 379,353 tonnes exported in 2023. The surge in exports reflects the growing demand from international buyers seeking cost-effective alternatives amid falling prices in the Chinese market.

December Exports Surge with Price Declines

In December 2024, China’s ferro-silicon exports totaled 30,870 tonnes, marking a 31% increase compared to 23,644 tonnes in December 2023 and a 19% rise from November 2024. The average price for 72% grade ferro-silicon in 2024 was 6,358 yuan per tonne ($871), reflecting an 11% decrease from the previous year, when prices stood at 7,106 yuan per tonne. This drop in prices has been a key factor in driving China’s ferro-silicon exports, as international buyers capitalize on the more competitive pricing.

Lower Prices Lead to Global Competitiveness

Despite the price reductions, which hit the lowest levels since December 2020, China’s ferro-silicon industry remains competitive in global markets. On December 31, 2024,  assessed prices for 72% grade ferro-silicon at 5,950-6,150 yuan per tonne, primarily driven by tepid demand in the downstream steel and construction sectors. The Chinese market’s ability to offer lower prices for ferro-silicon positions the country as a dominant exporter, particularly as global industries continue to seek cost-effective materials.

In conclusion, China’s ferro-silicon exports are on an upward trajectory in 2024, driven by lower domestic prices and robust international demand. The country’s ability to remain competitive in the global ferro-silicon market will likely support further export growth in the coming years.

Soaring Power Costs May Drive Up Indian Ferro-Silicon Prices and Curtail Production

Ferro-Silicon

Ferro-silicon producers in Meghalaya, India, are facing a challenging period due to rapidly increasing power costs. On 26 October 2024, the Meghalaya State Electricity Regulatory Commission raised the electricity tariff by 1.47 rupees/kWh, bringing the new rate to Rs 6.47/kWh. This tariff hike, which is set to remain in effect until March 2025, is putting immense pressure on the region’s ferro-silicon industry, known for its energy-intensive production processes.

As a result of these rising energy costs, producers in Meghalaya have already reduced their output by 15-20%, and further increases in power tariffs could significantly impact their profit margins. Sources indicate that the combination of higher power costs and strict environmental regulations could lead some producers to cut back further on production or even shut down operations entirely if price adjustments for ferro-silicon do not sufficiently offset the added energy expenses.

Ferro-silicon production requires a large amount of electricity, with approximately 8,500 kWh of power needed for every tonne of ferro-silicon produced. As such, the new tariff will increase the cost of production by more than Rs 12,000 per tonne (approximately $142.71 per tonne), which is significantly higher than the previous year's energy costs. Given the competitive nature of the global ferro-silicon market, this cost increase may lead to higher prices for consumers while squeezing producers’ margins.

Although some producers in Meghalaya restarted their operations in mid-October after a temporary shutdown caused by stricter environmental regulations, the persistent rise in energy costs is threatening to disrupt the recovery. Producers are now at a crossroads—if the November ferro-silicon prices fail to reflect the higher power costs, several facilities may be forced to shut down again, exacerbating supply shortages and potentially driving further price increases.

The Future Outlook for Indian Ferro-Silicon Production

With India being a significant global producer of ferro-silicon, especially in regions like Meghalaya, the outcome of this energy crisis will have wide-reaching implications. If producers continue to struggle with escalating electricity costs, the production slowdown could not only raise domestic prices but also affect export markets. As ferro-silicon is a crucial component used in steelmaking, any supply disruptions in India could put pressure on the global supply chain.

Despite the challenges, the situation presents an opportunity for alternative power solutions, such as renewable energy, to help stabilize production costs. However, without significant intervention or price adjustments, the future of India's ferro-silicon production may be uncertain in the coming months.

Silicon Anode Technology Gears Up for Mass Production

HPQ Silicon

As the electric vehicle (EV) industry continues to expand, the demand for more efficient and sustainable battery technologies is reaching unprecedented levels. Among the leading innovations in this sector is the development of silicon anode materials, which are poised to revolutionize the market currently dominated by traditional lithium-ion batteries with graphite anodes.

HPQ Silicon Advances Toward Commercial Manufacturing

Canada-based HPQ Silicon is at the forefront of this shift, having recently inked an initial agreement to construct a facility in northern Germany for producing silicon-based battery anode materials. This collaboration with a German industrial partner aims to leverage HPQ's proprietary Purevap Quartz Reduction Reactor (QRR) technology. This technology not only manufactures high-purity silicon—the critical feedstock for anode materials—but also incorporates a carbon off-gas capture system to produce green synthetic fuels, thus enhancing the sustainability of the production process.

NanoGraf and Other U.S. Advances

In parallel, U.S.-based NanoGraf has launched Onyx, a silicon oxide anode material that claims cost parity with synthetic graphite while improving battery cell energy density by 30%. Such advancements are not only a testament to the potential of silicon anodes to enhance lithium-ion batteries but also reflect significant strides in reducing production costs and increasing stability.

NanoGraf's expansion includes a new plant in Flint, Michigan, supported by a $60 million grant from the U.S. Department of Energy. This facility is expected to dramatically increase production capacity, aiming to meet the growing demand for silicon anode materials necessary to power up to 1.5 million EVs annually.

Growing Silicon Anode Landscape

The landscape for silicon anode production is also becoming more geographically diverse. Companies like Sila Nanotechnologies and Group14 Technologies are investing heavily in facilities in Moses Lake, Washington, to ensure a steady supply of essential materials like silane gas and silicon-carbon composites. These developments are crucial as they contribute to the overall resilience and sustainability of the supply chain in the battery manufacturing sector.

As these technologies move from pilot scales to full commercial production, the industry faces several challenges, including scaling up production and managing supply chain dynamics. However, the ongoing investments and collaborations signal a robust commitment to overcoming these hurdles, promising a significant shift in the battery technology landscape by 2030.

REC Silicon Shifts Focus from Polysilicon to Silicon Gases Amid Production Challenges

REC Silicon

REC Silicon, a Norway-based manufacturer, is halting its efforts to produce solar-grade polysilicon at its Moses Lake, Washington facility due to persistent quality issues, pivoting to focus on the production of silane gas, a strategic shift reflecting changes in market demands and internal capabilities.

Production Shift Due to Quality Challenges

Initially, REC Silicon aimed to resume polysilicon production supported by a significant investment from South Korean solar panel producer Hanwha Qcell in 2022, which included a 10-year offtake agreement. However, despite several attempts to enhance the quality of the polysilicon, REC faced continuous challenges in removing key impurities. The product ultimately failed a qualification test in December, leading to decision of shutting down the polysilicon production line. The first deliveries were consistently delayed throughout 2024, failing to meet the high purity standards required for solar cell production.

Strategic Refocus on Silicon Gas Production

With the closure of the polysilicon segment, REC Silicon is now redirecting its focus towards the production of silicon gases, particularly silane, which is used in the manufacture of silicon anodes for batteries. This move is expected to better align with the evolving market dynamics, especially as the demand for battery materials increases. REC Silicon's shift is timely, considering the reduced potential customer base in the U.S. for solar-grade polysilicon, exacerbated by the doubling of U.S. tariffs on polysilicon imports from China.

The company anticipates the shutdown process will take approximately three months, during which it will maintain the necessary equipment for silicon gas production. This strategy not only saves costs but also allows for operational flexibility, enabling the company to potentially restart or scale operations based on future market needs.

In September, REC signed a significant contract to supply silane to Sila Nanotechnologies from the first quarter of 2025 through to 2031. Sila Nanotechnologies also holds contracts with major firms like Mercedes-Benz and Panasonic, indicating a strong upcoming demand for REC's silicon gas products.

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.

Elkem 1Q Earnings 2025 Rise on Silicones and Carbon Sales, Despite Silicon Division Weakness

Elkem

Strong Silicones and Carbon Solutions Offset Declines in Silicon Products

Elkem 1Q earnings 2025 rose by 25% year-on-year, driven by strong performance in the company’s silicones and carbon solutions divisions. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled NKr898 million ($86 million), despite headwinds in global trade and energy markets. However, the silicon products division—which includes ferro-silicon and silicon metal—recorded a sharp decline due to production interruptions and weak demand.

Silicon Division Faces Headwinds from Tariffs and Market Disruptions

The silicon division’s EBITDA fell 28% to NKr489 million, as power curtailments in Iceland, maintenance in Norway, and uncertainty around U.S. tariffs weighed on performance. Sales volumes dropped 9% year-on-year to 106,000t. Elkem noted that tariffs announced on 2 April by the U.S. impacted silicon and ferro-silicon, despite exemptions for many other ferro-alloys. The firm warned that indirect effects of trade disputes—like weakened global demand—could continue to erode margins.

Silicones Division Up for Sale After Strong Performance

Elkem plans to divest its silicones division following a 2024 strategic review. Despite being listed as "discontinued operations," the division’s Q1 2025 sales surged 34% to 106,000t, with strength in the Asia-Pacific region. Operating income rose 16% to NKr3.9 billion, even as prices softened. Meanwhile, carbon solutions held steady with 64,000t in volume and a 4% EBITDA gain, supported by stronger sales in Brazil and specialty carbon products.

The Metalnomist Commentary

The Elkem 1Q earnings 2025 reveal a business navigating complex trade pressures while optimizing its portfolio. Strategic geographic diversification and a timely silicones divestment may help Elkem weather potential volatility in its core silicon segment.

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.

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.