Eramet Manganese Ore Volumes Rise Despite Lower Gabon Mine Output

Eramet Manganese

Eramet manganese ore volumes increased in the first quarter as stronger transportation and external sales offset lower mine production from Comilog’s Moanda operations in Gabon. The French multi-metals group transported 1.61mn t of manganese ore in January-March, up 16% from a year earlier.

Eramet manganese ore volumes are on course to reach 6.4mn-6.8mn t for the full year. This suggests that logistics performance and inventory movement remain strong despite weaker quarterly production.

Eramet manganese ore volumes matter because Gabon is one of the world’s key manganese ore supply sources. Stable exports from Comilog support alloy producers in steelmaking markets, especially outside China.

Manganese ore production at Moanda fell by 11% on the year to 1.59mn t in the first quarter. However, external ore sales rose by 10% to 1.36mn t, showing that market deliveries remained resilient.

Alloy Output Supports Manganese Chain

Eramet’s manganese alloy production rose by 4% on the year to 168,000t in the first quarter. Sales increased by 6% to 158,000t.

The company produces manganese alloys across six sites in Norway, the US, France and Gabon. This gives Eramet exposure to both upstream ore and downstream alloy markets.

Manganese alloys are essential inputs for steelmaking. Ferro-manganese and silico-manganese improve strength, hardness and deoxidation performance in steel production.

The increase in alloy output indicates that downstream demand remained sufficient to support production. This is important at a time when some regional steel markets are under pressure from weak construction activity and cautious buying.

Eramet’s integrated position gives it flexibility. Higher transported ore volumes support external customers, while alloy production allows the company to capture additional value further along the manganese chain.

India Demand Offers Support as China Remains Weak

Eramet expects manganese ore demand to increase slightly in 2026. Growth is expected to come from higher alloy production in India and other non-China markets.

India is becoming more important in the manganese market because of steel production growth and alloy capacity expansion. Stronger Indian alloy output can support ore demand even when Chinese consumption is weaker.

China remains a pressure point. Eramet expects manganese ore demand in China to stay under pressure, reflecting slower steel demand and weaker market conditions.

This creates a more regionalised manganese outlook. Suppliers with access to growing alloy markets outside China may be better positioned than those heavily dependent on Chinese demand.

For Eramet, the key issue will be maintaining transported volumes while improving mine output. If Moanda production recovers and alloy demand remains steady, the company can strengthen its position across both ore and alloy markets.

The Metalnomist Commentary

Eramet’s first-quarter figures show that manganese supply strength depends as much on logistics and sales execution as mine output. India’s alloy growth could become a more important demand anchor if China’s steel-linked manganese consumption remains weak.

Rare Earth Metal Alloy Production Expands as NRE and Ningbo Funeng Plan Baotou Plant

Northern Rare Earth

Rare earth metal alloy production is set to expand in China as Northern Rare Earth and Ningbo Funeng prepare a new plant in Baotou. The project strengthens China’s downstream rare earth value chain at a time when magnet, motor, and advanced materials demand continues to rise.

Northern Rare Earth will invest 112 million yuan to form Northern Funeng New Material with Ningbo Funeng. The joint venture will build a rare earth metal alloy production line in the motor industrial park of Baotou’s rare earth high-tech zone.

The project will require total investment of 290 million yuan. It is designed for 10,000 tonnes per year of rare earth metals, including cerium metal, cerium/praseodymium-neodymium alloy, ferro-dysprosium, and ferro-holmium alloys.

Baotou Project Moves NRE Further Downstream

Northern Rare Earth will hold 51% of the new venture, while Ningbo Funeng will own the remaining stake. The companies have not yet disclosed the construction schedule or expected launch date.

The project gives NRE a broader downstream product base. The company’s metal product structure has previously focused on praseodymium-neodymium metal and lanthanum/cerium metal.

The new line adds high-purity alloys and functional rare earth alloys containing heavy rare earth elements. This is strategically important because dysprosium and terbium are critical for high-performance permanent magnets used in motors, vehicles, robotics, and energy systems.

Alloy Capacity Supports Magnet and Motor Supply Chains

Rare earth metal alloy production is becoming more important as demand grows for permanent magnets and rare earth functional materials. By locating the plant in Baotou, NRE is reinforcing the city’s role as a major rare earth processing and manufacturing hub.

The project is expected to generate annual revenue of about 1.37 billion yuan over an estimated 20-year operating period. Forecast net profit is 24.69 million yuan per year, while the investment payback period is estimated at 12.52 years, including construction.

NRE also expects stronger earnings in 2025. The company forecasts profit of 2.18 billion to 2.36 billion yuan, up sharply from 1 billion yuan a year earlier, supported by higher sales, stronger production, destocking, and improved rare earth prices.

The new joint venture therefore fits a wider industrial strategy. NRE is not only increasing output but also moving toward higher-value alloy products that serve China’s magnet, motor, and advanced manufacturing supply chains.

The Metalnomist Commentary

China is deepening control over rare earth value addition, not only mining and oxide production. The Baotou project shows how alloy capacity is becoming a strategic layer between rare earth separation and high-performance magnet manufacturing.

Ferbasa's 2024 Ferro-Alloy Output Falls Amid Weak Global Steel Demand

Ferbasa

Brazilian producer faces falling prices, lower domestic sales, and volatile quarterly output across chromium and silicon alloys.

Ferbasa, Brazil’s leading ferro-alloy producer, reported a 1.5% year-on-year decline in total ferro-alloy production for 2024, falling to 301,208 tonnes, driven by a broader slowdown in global steel production and weak domestic demand. The company supplies various ferro-alloys including high- and low-carbon ferro-chrome, ferro-silicon, and ferro-silicon chromium to the steel industry.

While silicon alloy production rose 6% for the year to 99,836 tonnes, chromium alloy output declined slightly by 0.5% to 201,372 tonnes. However, Q4 chromium output fell 3.6% year-on-year to 51,513 tonnes, dragging total output lower for the quarter.

Quarterly Swings and Domestic Market Weakness Pressure Performance

Ferbasa saw Q4 silicon alloy production grow 9.7% year-on-year, but it dropped 21.3% compared to Q3, indicating quarterly volatility. A 6.2% increase in Q4 chromium production helped offset the silicon alloy decline.

Total ferro-alloy sales in 2024 declined 1.8% to 268,623 tonnes, with domestic sales down 8.3%, affected by rising steel imports that undercut local steel output. A 5.3% increase in exports, led by a 12.5% rise in chrome alloy exports, offered partial relief. Silicon alloy exports remained flat year-on-year.

Ferro-Alloy Prices Decline, Revenue Drops 8.1%

Despite stable export volumes, Ferbasa’s net revenue fell 8.1%, due mainly to a 7.6% drop in ferro-alloy segment revenue. This was driven by an 11.6% fall in average dollar prices for ferro-alloys.

The company blamed the pricing pressure on reduced stainless steel production in China, subdued global economic activity, and ongoing U.S. anti-dumping investigations that caused market caution around silicon alloy pricing.

Ferbasa remains exposed to volatile pricing cycles, international trade tensions, and macroeconomic headwinds, which may continue to pressure Brazil’s ferro-alloy sector in 2025.

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.

Xinjiang Jinsheng Magnesium Expands Production Capacity in China

Xinjiang Jinsheng, New plant

New phase of plant construction to increase magnesium metal and alloy production by 35,000 t/yr.

Chinese magnesium producer Xinjiang Jinsheng has officially commenced the construction of the second phase of its Hami-based plant in Xinjiang province. This phase will add 35,000 tonnes per year of production capacity for magnesium metal and alloy. The construction, which began in April 2024, is expected to be completed and operational by the end of 2026, significantly boosting Jinsheng's production capabilities.

Expansion of Jinsheng’s Magnesium Production

The Hami plant’s first phase, which began production in 2011, has reached a full capacity utilization of 20,000 tonnes per year by 2024. With the addition of the second phase, Jinsheng will increase its total production capacity for magnesium metal and alloys to 55,000 tonnes per year. This expansion is a key development for the company, as it strengthens its position in the competitive magnesium industry.

Qixin Alloy's Role and Acquisition by WZ Group

Xinjiang Jinsheng Magnesium is a subsidiary of Zhejiang Qixin Alloy, which operates three magnesium plants in China: Jinsheng Magnesium in Hami, Taiyang Magnesium in Wuzhong (Ningxia), and Jinshi Magnesium in Alashan (Inner Mongolia). Together, these facilities contribute a total production capacity of 80,000 tonnes per year.

In August 2023, Zhejiang Qixin Alloy was acquired by WZ Group, a state-owned enterprise with a significant presence in the industrial sector. WZ Group’s acquisition of Qixin is part of its strategy to strengthen its foothold in the magnesium industry. The synergy between WZ’s existing subsidiaries and Qixin is expected to optimize WZ’s industrial structure and enhance its overall competitiveness.

China’s Magnesium Industry Growth

China remains the world’s leading producer of magnesium, with a total output of 953,100 tonnes of magnesium metal in 2024. Of this, 52,800 tonnes were produced in Xinjiang province, where Jinsheng’s Hami plant plays a critical role. The continued growth in China’s magnesium production is driven by the increasing demand for magnesium alloys in industries such as automotive, aerospace, and electronics.

Conclusion

The expansion of Xinjiang Jinsheng’s magnesium production capacity represents a major step in the company's growth and China's broader efforts to maintain its dominance in the global magnesium market. With the support of WZ Group, Jinsheng’s enhanced production capabilities will strengthen its position as a leading supplier of magnesium metal and alloys.

Titanium Grade 7 Ingot Production Achieved by DongA Special Metal Using Recycled Scrap

DongA Special Metal's Titanium Grade 7 Ingot

Korea’s first Ti Gr.7 ingot production from scrap marks breakthrough in domestic titanium alloy manufacturing

PAM and ISM technologies enable supply chain innovation for chemical and nuclear-grade titanium products

South Korea’s DongA Special Metal has successfully achieved titanium Grade 7 ingot production using palladium-added scrap, marking a first in the nation’s metallurgical history. The company announced that the Titanium Grade 7 ingot production was completed using plasma arc melting (PAM) technology and sold entirely to a U.S.-based metal processing company.

Advanced melting meets global demand for high-purity corrosion-resistant alloys

Titanium Grade 7 is a high-value alloy used in harsh chemical environments, thanks to its outstanding corrosion resistance. However, its production from recycled scrap is notoriously difficult, due to the high melting point and the need for precise composition control. To overcome this, DongA adopted PAM technology and integrated it with ISM (Induction Skull Melting) equipment—enabling simultaneous refining, remelting, and continuous casting.

This approach contrasts with the global standard, where 75% of titanium ingots are still made using vacuum arc remelting (VAR). DongA’s use of PAM-ISM fusion technology positions it ahead in recycling-based alloy innovation, especially for critical industries.

Domestic production reduces import dependence for chemical, nuclear, and desalination sectors

The company’s 1-ton titanium ingot facility, the largest in Korea, now supports local sourcing for semiconductor, display, and chemical process equipment manufacturers. Titanium Grade 7 is essential for chlorine process systems, wet chlorine coolers, ion exchange membrane equipment, nuclear condenser tubing, and desalination heat exchangers.

This milestone also opens the door for strategic collaboration with Korean industrial players and public R&D institutions. The successful export to the U.S. underscores DongA’s technical competitiveness in alloy design and electrochemical understanding of the palladium-titanium system.

The Metalnomist Commentary

DongA Special Metal’s innovation in Titanium Grade 7 ingot production signals Korea’s move up the titanium value chain. By mastering scrap-based high-purity alloy production, the firm reduces import dependency and strengthens national capabilities in strategic sectors like nuclear energy, semiconductors, and chemical equipment.

US Aluminum Supply Flat in November as Plate, Sheet and Bar Imports Surge

US Aluminum

Secondary Smelters Cut Output While New Scrap Drives Melting Growth

US aluminum supply remained virtually unchanged year-over-year in November 2024, totaling 699,000 metric tonnes (t), according to the latest US Geological Survey (USGS) data. Although overall supply edged up by just 1,000t compared to November 2023, imports of aluminum plate, sheet, and bar surged by 36%, supporting stability in the market.

The only supply category to show a year-on-year increase was plate, sheet, and bar imports, which rose by 29,000t to 110,000t. In contrast, crude aluminum metals and alloy imports declined by 14,000t to 263,000t, while domestic primary production dipped by 6,000t to 55,000t. This trend signals continued reliance on semi-fabricated imports amid weaker domestic output.

Secondary Smelters Lead Drop in Consumption and Recovery

Total aluminum consumption in November fell by 8,000t to 335,000t. Metal recovery dropped in tandem, falling 7,000t to 271,000t. Secondary smelters led the decline, reducing consumption by 5,000t to 205,000t and recovery by 4,000t to 153,000t. Independent mill fabricators also reduced consumption and recovery by 3,000t each.

However, year-to-date trends showed modest gains. Total aluminum consumption and recovery both rose by 50,000t in the first 11 months of 2024 compared to the same period in 2023, reaching 3.93 million tonnes and 3.21 million tonnes, respectively.

New Scrap Supports Melting Increases Despite Alloy Production Drop

Scrap utilization also shifted notably. In November, total aluminum scrap melted or consumed rose to 288,000t, up 4,000t from a year earlier. New scrap drove this increase, rising by 7,000t to 187,000t, while old scrap declined by 3,000t to 116,000t.

Cumulative data from January through November 2024 show total aluminum melted or consumed hit 3.399 million tonnes, up from 3.21 million tonnes a year earlier. New scrap increased by 159,000t, while old scrap rose by 30,000t.

Nevertheless, aluminum alloy production at secondary smelters fell. November’s total dropped by 3,400t to 91,400t. Production of 380 alloy and its variations declined 2,700t to 17,600t, while wrought alloys and extrusion billets rose slightly by 700t to 61,900t. Year-to-date alloy output fell by 43,000t, led by a 23,000t drop in 380 alloy production.

Yongshan Lithium Molybdenum Output Falls as Concentrate Supply Tightens

Yongshan Lithium

Yongshan Lithium molybdenum output declined in 2025 as tight molybdenum concentrate supply reduced production of ferro-molybdenum alloy and roasted concentrate. The Jilin-based metals producer reported lower output and sales across its molybdenum business.

Yongshan Lithium molybdenum output fell despite firmer molybdenum prices and continued demand from high-quality special steel. Feedstock availability became the main constraint, limiting the company’s ability to maintain production volumes.

Yongshan Lithium molybdenum output reflects a wider pressure point in China’s molybdenum market. Alloy producers need concentrate feedstock, but tight supply and higher unroasted concentrate prices increased procurement pressure during the year.

The company, also known as Jixiang Molybdenum or New China Dragon Molybdenum, produced 17,631t of ferro-molybdenum alloy in 2025, down 22% from a year earlier. Sales fell by 23% to 18,018t.

Concentrate Tightness Hits Ferro-Molybdenum Production

Yongshan’s ferro-molybdenum alloy production was directly affected by constrained concentrate supply. The company purchased concentrate and alloy from other plants during the year to support regular production and sales.

This shows how dependent ferro-molybdenum producers remain on reliable upstream feedstock. Even when downstream demand is firm, alloy plants cannot maintain output without stable concentrate availability.

Roasted molybdenum concentrate output fell more sharply. Yongshan produced 29,679t in 2025, down 34% from a year earlier, because unroasted concentrate feedstock prices trended higher.

Sales of roasted concentrate dropped by 55% to 6,894t. The steep fall suggests that more material was needed internally or that market conditions made external sales less attractive.

Molybdenum concentrate is the key input for ferro-molybdenum, which is used in special steel, stainless steel, energy equipment, chemical processing, aerospace and defence-related applications. Tight concentrate supply therefore affects the entire alloy value chain.

Higher Prices Support Market but Not Volumes

China’s ferro-molybdenum market remained supported by tight feedstock and stronger consumption from high-quality special steel producers. Average domestic prices for 60% ferro-molybdenum alloy rose by 5.2% in 2025 to 246,307 yuan/t ex-works.

Roasted concentrate prices also increased. Average prices for 57% grade roasted concentrate rose by 6.1% year on year to 3,939 yuan/mtu.

The price gains show that molybdenum demand remained resilient in higher-value steel applications. However, Yongshan’s results also show that higher prices do not automatically translate into higher output when feedstock supply is constrained.

The company plans to optimise its molybdenum product structure in 2026. It aims to phase out low-margin and low-value-added products while advancing energy-saving and cost-reduction initiatives.

This is a logical response to a tighter raw material environment. When concentrate is expensive and difficult to secure, producers must prioritise higher-margin products and improve operating efficiency.

Yongshan formally changed its name from Jixiang Molybdenum in July 2024, reflecting a stronger focus on the lithium industry. Even so, molybdenum remains an important part of its industrial metals base.

The Metalnomist Commentary

Yongshan’s weaker molybdenum output shows that China’s alloy chain is being constrained upstream, not only by end-use demand. In a tight concentrate market, the competitive advantage will shift toward producers with secure feedstock, higher-value alloy products and stronger cost control.

Ferbasa Ferro-Alloys Q1 Results Show Domestic Strength Amid Export Challenges

Ferbasa

Brazilian ferro-alloy producer Ferbasa delivered mixed Q1 results with domestic ferro-alloys sales surging 30% while export volumes declined significantly. The company's performance reflects broader industry challenges including US anti-dumping measures and global protective tariffs affecting ferro-silicon markets.

Domestic Market Recovery Drives Growth

Ferbasa ferro-alloys total sales increased 10.2% year-on-year to 69,563 tonnes in Q1. The growth was primarily driven by robust domestic demand as Brazil's steel sector engaged in restocking activities. Domestic sales reached 38,682 tonnes, representing a substantial 30% increase compared to the previous year.

However, export performance presented a contrasting picture. Export sales dropped 7.3% annually to 30,851 tonnes and fell 20.5% quarter-on-quarter. The company attributed this decline to tariff pressures, market uncertainty, and persistent logistical challenges affecting international shipments.

Production Costs and Market Pressures Impact Operations

Despite increased sales volumes, Ferbasa ferro-alloys production decreased 1.3% year-on-year to 75,821 tonnes. Chromium alloy production fell 1.8% to 50,372 tonnes, while silicon alloy output declined 0.2% annually to 25,491 tonnes. Nevertheless, silicon alloy production showed quarterly improvement with a 20% increase.

Meanwhile, the company faced mounting cost pressures. Production costs rose significantly during the quarter, with electricity and chrome ore representing the primary cost drivers. These increases highlight the ongoing challenges facing ferro-alloy producers in managing input costs while maintaining competitive pricing.

Global Trade Tensions Create Market Uncertainty

The ferro-silicon market faces heightened uncertainty due to escalating trade protection measures. US anti-dumping actions and protective tariffs worldwide have created challenging conditions for exporters. As a result, market participants remain cautious about international trade prospects.

Therefore, Ferbasa's strategy of strengthening domestic market position appears well-timed. The company generated R$549 million ($97.62 million) in Q1 revenue, up 7.9% year-on-year, supported by higher ferro-alloy revenues and favorable USD-BRL exchange rates.

The Metalnomist Commentary

Ferbasa's Q1 results exemplify the current ferro-alloy industry dynamics where domestic market strength compensates for challenging export conditions. The company's ability to capitalize on Brazilian steel sector restocking while navigating global trade tensions demonstrates strategic market positioning in an increasingly protectionist environment.

China’s Jingxi Daxinan Resumes Manganese Flake Production Post Lunar New Year

Manganese Flake

Equipment Maintenance Over, Firm Restarts Output of 30-40 t/d Flake Production

China's Jingxi Daxinan, a major producer of manganese flake, has resumed its production of 30-40 tonnes per day (t/d) this week, following a scheduled equipment maintenance during the lunar new year holiday. This marks the firm's return to full operations after halting production in late January, just before the holiday.

Recovery of Manganese Flake Production and Rising Prices

Jingxi Daxinan’s smelter, located in Jingxi city in south China's Guangxi province, has a capacity to produce 20,000 tonnes per year. The production stoppage, part of a broader industry trend, was primarily due to routine maintenance and production losses faced by some smaller producers. Many smaller manganese producers without in-house mining and power generation facilities halted production to address similar challenges.

Post-holiday, manganese flake prices have started to show signs of recovery, driven by the rising prices of substitutes in the ferro-alloy market. This upward trend is supported by higher prices of imported manganese ore, which have pushed up the costs of ferro-alloy substitutes, leading producers to raise prices.

Domestic Price Increase and Market Outlook

On February 7, 2025, domestic prices for 99.7% grade manganese flake were assessed at 12,500-12,700 yuan per tonne ($1,715-$1,742/tonne) ex-works, reflecting a modest increase of Yn100 per tonne compared to February 6. This increase aligns with the broader trend of rising costs for manganese ore substitutes, which have been influenced by the higher costs of imported manganese ore.

With production now resuming, the market anticipates further shifts in supply and price dynamics. As more producers resume output, manganese flake production is expected to stabilize, supporting the growing demand from industries that rely on manganese for ferro-alloy production.

Tianhao Magnesium Alloy Plant Targets NEV and Aerospace Lightweighting Demand

Huizhou Tianhao New Material Technology

Tianhao magnesium alloy plant development has started in Huizhou, Guangdong province, as Chinese manufacturers expand capacity for lightweight materials used in new energy vehicles, electronics and aerospace.

Tianhao magnesium alloy plant is designed to produce 20mn units/yr of magnesium alloy profiles. The company has not disclosed a start-up timeline, but construction began on 4 June.

Tianhao magnesium alloy plant development reflects rising demand for lightweight structural materials across NEVs, consumer electronics, low-altitude aviation and aerospace. Magnesium's low density gives it an advantage where reducing component weight can improve energy efficiency and vehicle performance.

China already dominates global magnesium production and processing, giving domestic manufacturers strong access to metal feedstock and downstream fabrication capabilities.

Lightweighting Drives Magnesium Alloy Demand

Magnesium alloys are increasingly used where manufacturers need lower weight without abandoning metallic structural materials. This is especially relevant to electric vehicles, where reducing vehicle mass can improve driving range and offset battery weight.

Consumer electronics provide another important demand segment. Magnesium alloys can be used in lightweight housings and structural components that require stiffness and dimensional stability.

The low-altitude economy could become a larger growth market. Drones, electric vertical take-off aircraft and other lightweight aviation platforms need materials that can reduce mass while maintaining adequate structural performance.

Aerospace applications add further demand potential, although qualification requirements remain much stricter than in consumer or automotive markets.

China produced 428,400t of magnesium alloy in 2025, up 8% from the previous year. Stronger lightweighting demand and pressure to reduce carbon emissions supported the increase.

The Tianhao project therefore enters a market where both production and downstream applications are expanding.

China Strengthens Its Magnesium Processing Advantage

Global magnesium metal consumption reached around 1.2mn t in 2025. Magnesium alloy production represented the largest end-use segment at roughly 650,000t.

Other major applications included steel desulphurisation, aluminium alloying and metal reduction. However, magnesium alloy demand is expected to grow fastest as transportation and electronics markets seek lighter materials.

Global magnesium alloy consumption could reach 1.39mn t by 2028 if current growth expectations materialise. NEVs, consumer electronics and low-altitude aviation are expected to provide much of that increase.

China is well positioned to capture this growth because it controls a large share of global magnesium metal production and already has extensive alloying and fabrication capacity.

That advantage could deepen as manufacturers move further downstream into profiles, castings and finished components rather than selling primary magnesium alone.

For international buyers, this creates a familiar critical materials challenge. Strong Chinese integration can deliver low costs and scale, but it also increases geographic concentration across the magnesium supply chain.

The Metalnomist Commentary

Tianhao's project shows that magnesium is moving further into high-growth lightweighting applications. China's advantage lies not only in producing magnesium metal, but increasingly in converting it into higher-value components for EVs, electronics and aerospace.

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.

Aluminium-Magnesium Alloy Foundry Output Rises as China’s Auto Lightweighting Demand Grows

Al-Mg alloy foundry

Aluminium-magnesium alloy foundry output in China rose strongly in 2025 as the automotive sector increased demand for lightweight structural materials. Output climbed by 8.8% from a year earlier to 9.05mn t, making it the fastest-growing major foundry product category.

Aluminium-magnesium alloy foundry output outpaced grey cast iron, ductile iron and steel castings, according to the China Foundry Association. The increase reflects the growing role of aluminium and magnesium in vehicle weight reduction, emissions reduction and new energy vehicle design.

Aluminium-magnesium alloy foundry output has also expanded steadily over a longer period. Compared with 6.8mn t in 2020, production rose by 33.1% over five years, equal to a compound annual growth rate of 5.9%.

The figures show that China’s foundry sector is shifting toward lighter, higher-value materials. Automotive demand remains the main driver, especially as electric vehicle and hybrid platforms require more weight-efficient structures.

Automotive Lightweighting Drives Alloy Casting Growth

China’s automotive sector consumed 15.8mn t of foundry products in 2025, up 5% from a year earlier. The sector accounted for 30.2% of total foundry demand, making it the largest and most important end-use market.

Lightweighting is becoming more important because automakers need to improve energy efficiency, extend driving range and reduce lifecycle emissions. Aluminium-magnesium castings support those goals by replacing heavier components in selected structural and mechanical applications.

New energy vehicles are a major demand source. Electric vehicles and plug-in hybrids need lighter body structures to offset battery weight, while also supporting higher efficiency and better performance.

This trend benefits aluminium-magnesium alloy producers, die casters and foundries with automotive qualification. It also supports demand for higher-quality feedstock, tighter process control and more consistent alloy chemistry.

China’s total foundry output across all materials reached 52.3mn t in 2025, up 3.1% from a year earlier. That was the second-highest level since 2001, after 54.05mn t in 2021.

The overall foundry market is therefore growing, but the strongest momentum is in lightweight alloys. This shows how vehicle electrification and emissions policy are reshaping metal demand inside China’s manufacturing base.

Magnesium Feedstock Demand Strengthens With Foundry Expansion

Magnesium alloy feedstock consumption rose by 32% on the year to 215,000t in 2025. The increase was driven by stronger aluminium-magnesium alloy foundry output and broader use of lightweight casting materials.

This matters because magnesium is a smaller but strategically important metal. It is used in aluminium alloys, die casting and lightweight components, making it closely tied to automotive and transport applications.

Upstream magnesium metal output also increased. China produced 391,200t of magnesium metal in January-April, up 21.6% from a year earlier.

The rise in magnesium production suggests that upstream supply is responding to stronger downstream alloy demand. However, the sector remains exposed to energy costs, environmental controls and regional production concentration.

For aluminium and magnesium markets, China’s foundry data confirm a structural demand trend. Lightweight casting demand is no longer a niche story. It is becoming a core part of automotive materials strategy.

The next phase will depend on vehicle production growth, new energy vehicle penetration and the ability of foundries to meet stricter quality standards. As automakers push for lighter platforms, aluminium-magnesium alloys should remain one of the main beneficiaries.

The Metalnomist Commentary

China’s foundry data show that lightweighting is becoming a real metals demand driver, not just an automotive design concept. Aluminium-magnesium alloys are gaining because EVs and hybrids need lighter structures to offset battery weight and improve efficiency.

EU Ferro-Alloy Safeguards Face Legal Challenge From Grondmet

Ferro-alloy

EU Ferro-alloy safeguards are facing a legal challenge after German alloy trader Grondmet filed an action for annulment with the EU’s General Court. The case could become an important test of how Europe balances import protection, industrial competitiveness, and raw material access for alloy consumers.

Grondmet is disputing the legal basis for safeguards implemented by the EU on 19 November 2025. The company argues that the measures do not meet the European Commission’s own thresholds because a recent, sudden, sharp, and significant rise in imports cannot be substantiated for ferro-silicon or ferro-manganese.

The challenge matters because ferro-alloys are essential inputs for steelmaking, foundries, stainless steel, and specialty alloy production. If safeguards raise costs or restrict access without clear market justification, downstream manufacturers could face additional pressure at a time when European industry is already struggling with energy costs and regulatory burdens.

Grondmet Questions Import Evidence and Product Grouping

Grondmet’s case focuses on whether the EU properly assessed the ferro-alloy market before applying safeguards. The company says the Commission failed to conduct a product-specific assessment and wrongly treated different grades and qualities as homogeneous product groups.

This point is commercially important. Ferro-silicon, ferro-manganese, and other ferro-alloys are not interchangeable in many industrial applications. Grade, chemistry, impurity limits, origin, and delivery reliability can determine whether a material is suitable for a specific steel or alloy recipe.

Grondmet also argues that out-of-quota price thresholds are disconnected from actual market conditions. The company specifically says the ferro-silicon threshold is misaligned with prevailing prices and lacks clear economic or methodological justification. If accepted by the court, this argument could weaken the basis for applying broad safeguards across differentiated alloy products.

Energy Costs Remain Europe’s Deeper Ferro-Alloy Problem

EU ferro-alloy safeguards also raise a wider competitiveness question. Grondmet argues that the primary structural challenge for European ferro-alloy producers is energy cost, not import pressure. This is a critical distinction because ferro-alloy production is highly power-intensive.

If high electricity prices are the main reason European producers are losing competitiveness, import safeguards may not solve the underlying problem. They may instead shift costs to steelmakers, foundries, traders, and industrial buyers that depend on competitively priced alloying materials.

The legal process could also attract wider industry participation. An action for annulment allows third parties to intervene either in support of or against the challenge. Grondmet has invited European traders, producers, and consumers to join the case, suggesting that the dispute may become a broader debate over EU industrial policy and market access.

The Metalnomist Commentary

The Grondmet case highlights a growing tension in European metals policy. Protection tools may support producers in the short term, but they can weaken downstream competitiveness if they do not address the real cost problem: energy.

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 JDC Lifts Ferro-Molybdenum Alloy Output in 2024

Jinduicheng Molybdenum

Jinduicheng Molybdenum Reports 47% Surge in Alloy Production

China’s Jinduicheng Molybdenum (JDC) significantly boosted its ferro-molybdenum alloy output in 2024, highlighting strong operational momentum. JDC produced 22,847 tonnes of molybdenum metal equivalent, marking a 47% increase from 2023. Sales reached 21,748 tonnes, up 36% year-on-year.

The state-controlled firm also ramped up production of ammonium molybdate and molybdenum powder, growing by 11% and 12%, respectively. This output growth underscores JDC’s strategy to enhance value-added product output amid robust domestic demand.

Mining Capacity Supports Growth Outlook

JDC operates two key mining assets — the Jinduicheng Mine (13.4mn t/yr capacity) and the Ruyang Donggou Mine (8.8mn t/yr). Together, these provide a stable ore supply, reinforcing JDC’s ability to scale alloy and powder production.

Nationally, China produced 306,000 tonnes of molybdenum concentrate in 2024, reflecting an 8.5% increase from the previous year. Ferro-molybdenum consumption in China grew 12%, reaching 190,000 tonnes, driven by downstream applications in construction and clean energy.

Strong Demand Expected in Steel, Energy, and Aerospace Sectors

JDC forecasts continued strong demand in 2025 due to the widespread use of molybdenum-containing steels. These materials are crucial in new energy systems, advanced materials, and aerospace engineering, aligning with China's industrial upgrade goals.

Meanwhile, tightening global supply and rising alloy-grade specifications may support firm molybdenum pricing throughout the year. JDC is likely to maintain output discipline while leveraging its vertically integrated structure to navigate future volatility.

The Metalnomist Commentary

JDC’s growth underscores China’s ability to secure domestic alloy production amid global uncertainty. As energy transition accelerates, materials like molybdenum will be strategic levers in the race for industrial dominance.

HBIS Silico-Manganese Tender Prices Fall as China Steel Demand Weakens

Silico-Manganese

HBIS silico-manganese tender prices fell in April as weaker steel demand and higher spot alloy availability pressured China’s bulk alloy market. Hebei Iron and Steel cut its tender price for 65/17 grade silico-manganese to 6,300 yuan/t delivered and paid by acceptance bill.

The latest HBIS silico-manganese tender prices were down by 250 yuan/t from the previous tender. The state-owned steel producer increased April purchase volumes to 8,500t, up by 3,400t from its previous buying round.

HBIS silico-manganese tender prices are closely watched because they help set the tone for China’s manganese alloy market. The lower tender confirms that steel mills are using weak downstream demand and larger spot availability to push procurement costs lower.

The cut also reflects pressure from rising steel inventories. China Iron and Steel Association members held 18.63mn t of steel inventories as of 20 April, up 6.4% from early April and 12% from a year earlier.

Oversupply Weighs on Alloy Prices Despite Higher Tender Volumes

China’s domestic 65/17 silico-manganese alloy prices fell to 6,000-6,150 yuan/t ex-works on 23 April. This was down from 6,100-6,300 yuan/t on 9 April.

The price decline reflects continued oversupply in the market. Higher inventory pressure has limited the ability of alloy producers to defend prices, even when some steel demand shows signs of recovery.

HBIS’ higher purchase volumes gave the market some support, but not enough to reverse price direction. Buyers remain cautious because steel inventories are still elevated and construction demand has not yet fully recovered.

Some market participants are more optimistic about the steel outlook. Construction and infrastructure demand are expected to resume gradually, while domestic and seaborne steel demand improved in mid-April.

Chinese steel mills also lifted production slightly during that period. If steel output continues to rise, silico-manganese consumption could improve because the alloy is widely used in steel deoxidation and strengthening.

However, the recovery remains uneven. The higher HBIS buying volume suggests some restocking need, but the lower price shows that mills still hold negotiating power.

Ore Costs and Output Curbs Limit Downside Pressure

Many silico-manganese plants kept firm offers despite weaker spot prices. Higher manganese ore feedstock costs continue to support producer cost floors.

Output curbs at several large alloy producers in north China also helped limit deeper declines. Reduced production can help balance supply if demand recovers, but current inventory pressure remains the larger problem.

The market is therefore caught between two opposing forces. Weak steel demand and alloy oversupply are pushing prices lower, while ore costs and production curbs are preventing a sharper collapse.

This tension is typical of bulk alloy markets. Producers cannot easily cut prices below cost for long, but buyers can delay purchases when inventories are high and demand is uncertain.

For steelmakers, lower silico-manganese tender prices provide some cost relief. For alloy producers, the main challenge is preserving margins while feedstock prices remain firm.

The next market signal will come from whether steel demand improves enough to absorb alloy inventories. Without clearer consumption growth, manganese alloy prices may remain under pressure even if ore costs stay elevated.

The Metalnomist Commentary

HBIS’ tender cut shows that China’s silico-manganese market is still demand-led, despite higher ore costs. A real recovery will require stronger steel consumption and inventory drawdowns, not only higher tender volumes.

China Vanadium Prices Weaken as Supply Rises and Steel Demand Slows

China Vanadium

China vanadium prices are under renewed pressure as higher spot availability, weak alloy demand and softer steel mill tenders weigh on the market. Domestic 98% grade vanadium pentoxide flake prices fell to 82,000-87,000 yuan/t on 8 May, their lowest level since 20 April.

China vanadium prices began to soften in late April after alloy producers slowed purchases and cut procurement bids. Most ferro-vanadium producers lowered feedstock buying levels after steel mill tender prices came in below market expectations.

China vanadium prices are also being pressured by rising output. Domestic vanadium production reached 56,040t of vanadium pentoxide in January-April, up 7.6% from a year earlier.

The market is now facing a classic supply-demand imbalance. Higher vanadium flake and slag production has increased spot availability, while steel-sector demand remains weak and export outlets are slowing.

Higher Flake and Slag Output Increases Spot Availability

China’s vanadium supply increased because stronger earlier prices encouraged producers to lift output from vanadium-bearing steel slag. Vanadium-containing steel slag production rose to 49,320t in January-April, up 8% from a year earlier.

Higher flake prices in the first four months improved margins for slag-based production. Domestic 98% grade vanadium pentoxide flake averaged 80,812 yuan/t ex-works during January-April, up 9.5% from a year earlier.

New capacity has also added pressure. Qinhuangdao Baigong Steel started a 10,000 t/yr vanadium pentoxide flake production line in Hebei province in February.

This additional output arrived just as downstream buying slowed. Major flake suppliers had not finalised some contracts by 8 May, while some alloy producers were buying only limited volumes at lower cash prices.

The increase in spot availability has changed buyer behaviour. Alloy producers are no longer rushing to secure feedstock because they expect further price weakness.

That expectation can reinforce the decline. When buyers delay purchases, sellers face more pressure to reduce offers, especially when inventories rise and steel demand remains poor.

Weak Steel Tenders and Export Slowdown Limit Demand

Ferro-vanadium demand remains the main drag on the vanadium market. Domestic 50% grade ferro-vanadium prices fell to 93,000-94,000 yuan/t ex-works on 8 May, their lowest level since 1 April.

Steel mill tender prices also declined. Prices paid by steelmakers fell to 94,000-95,000 yuan/t delivered, including VAT and payable by acceptance bill, down from late-April levels.

Steelmakers are lowering bids because steel margins remain weak. This is especially important for vanadium because much of its demand comes from alloying in rebar and other steel products.

China’s rebar production fell to 29.54mn t in January-April, down 8.6% from a year earlier, as the real estate slowdown continued to reduce construction-related steel demand.

Steelmakers purchased an estimated 6,865t of vanadium alloys in April, down 17% from a year earlier. This confirms that weaker steel consumption is now feeding directly into lower vanadium alloy demand.

Export conditions are also turning less supportive. China’s vanadium flake exports are expected to decline in the coming months as international production increases.

Canadian producer Largo more than doubled vanadium pentoxide output in the first quarter to 2,616t, supported by higher-grade ore and steadier processing at its Brazilian mine. Russian producer Evraz also started a new 15,000 t/yr vanadium pentoxide flake plant in March and is expected to ramp up by June.

These additions reduce the need for some overseas buyers to rely on Chinese flake. That weakens a potential outlet for excess Chinese supply.

The near-term outlook remains soft. Unless steel mill tenders recover or vanadium exports improve, rising spot availability will likely keep pressure on vanadium pentoxide flake and ferro-vanadium prices.

The Metalnomist Commentary

China’s vanadium market is being hit by the wrong combination: rising supply, weak rebar output and cautious alloy buying. The longer-term battery storage story remains attractive, but near-term pricing still depends heavily on steel demand and feedstock discipline.

Indian Ferro-Alloy Industry Faces Mounting Challenges Amid Global Uncertainty

Indian Ferro Alloy

The Indian ferro-alloy industry confronts severe headwinds as global tensions, escalating production costs, and declining export demand create a perfect storm of challenges. Despite chrome and manganese alloys from India remaining exempt from tariffs in most international markets, producers struggle with deteriorating market conditions and regulatory pressures that threaten operational viability.

Production Costs and Regulatory Burdens Squeeze Margins

Rising production costs severely impact Indian ferro-alloy manufacturers, particularly due to higher power tariffs in key regions like West Bengal. Consequently, producers must manage operational expenses with unprecedented precision to maintain profitability. Meanwhile, some alloy producers have strategically shifted capacity from ferro-chrome to manganese alloys, seeking higher margins amid challenging market conditions.

The Bureau of Indian Standards (BIS) quality order requirements add another layer of complexity for Indian ferro-alloy producers. Administrative costs have surged following the inclusion of ferro-chrome, ferro-manganese, and silicon-manganese in the BIS quality order list. Therefore, producers face mounting pressure to complete registration before the November deadline, as manufacturing and distribution without proper certification will be prohibited from November 8th.

Export Markets Deteriorate as Global Demand Weakens

Export prospects for Indian ferro-alloy products have deteriorated significantly across key international markets. Demand for Indian ferro-chrome under long-term contracts has plummeted by an estimated 60-70% compared to last year, forcing many exporters to rely entirely on volatile spot demand. However, this shift exposes producers to greater market uncertainty and price volatility.

European markets present particularly acute challenges for Indian ferro-alloy exporters. The EU's pending safeguard investigation into manganese and silicon-based alloys, launched in December, creates substantial uncertainty for market participants. As a result, European appetite for Indian manganese alloys collapsed to just 2-3 containers in April, compared to India's 300,000 tonnes of manganese alloy exports to Europe in 2024.

Additionally, mounting container freight costs of $50-55 per tonne from India to Europe further constrain exporters' competitiveness. Expectations suggest freight rates will increase further in late May, compounding the challenges facing Indian ferro-alloy suppliers.

The Metalnomist Commentary

The Indian ferro-alloy industry's current struggles reflect broader global supply chain disruptions and trade policy uncertainties affecting critical mineral markets. The combination of regulatory compliance costs, weakening export demand, and rising logistics expenses suggests a prolonged adjustment period ahead for Indian producers seeking to maintain their competitive position in international markets.

Metalysis aluminium-scandium alloy powder enters commercial production in the UK

Metalysis

Metalysis aluminium-scandium alloy powder has reached commercial production in the UK. The move expands non-Chinese supply for a niche but strategic alloy. Meanwhile, Metalysis aluminium-scandium alloy powder targets faster deliveries for chip, defence, and aerospace customers.

Metalysis runs four Gen 2 units after doubling its operating base. Each unit produces up to 350kg per year of aluminium-scandium alloy powder. Therefore, the company positions itself for a meaningful share of a small market.

Gen 3 scale-up targets tonne output in a tight AlSc market

Metalysis plans tonne-scale output from Gen 3 units in the coming months. Nitesh Shah says the ramp will follow Gen 2 stabilisation and learning. As a result, aluminium-scandium alloy powder production could move from kilograms to tonnes faster.

Analysts estimate the aluminium-scandium market at only 3–4 tonnes per year. That tight ceiling makes reliability more valuable than headline capacity. However, even small expansions can reshape availability for high-purity powder buyers.

Export controls and semiconductor demand raise the value of Western supply

China’s export controls have pushed buyers to diversify the scandium supply chain. Metalysis aluminium-scandium alloy powder directly addresses that sourcing risk for midstream users. Meanwhile, customers increasingly prioritise traceable inputs for sensitive applications.

Chipmakers use aluminium-scandium sputtering targets in thin-film vapour deposition. They deposit aluminium-scandium nitride coatings for advanced semiconductor components. Therefore, stable AlSc alloy powder supply supports both yield control and procurement planning.

Defence and aerospace customers also dilute the powder with aluminium to make lightweight, high-strength alloys. That pathway links scandium availability to platform modernisation and airframe efficiency. However, the market will still demand strict quality control and consistent particle specifications.

The Metalnomist Commentary

Metalysis has entered a strategically important bottleneck, not a bulk metals market. Export controls will keep rewarding qualified non-Chinese suppliers with proven delivery. The next signal will come from Gen 3 qualification with semiconductor-grade customers.