Ferrosilicon Prices Relatively Stable but Business Plummets at Ferroglobe

Ferroglobe, a major producer of ferrosilicon used in the production of electrical steel, reports that alloy prices have remained relatively stable over the past nine months but its revenues plummeted amidst the pandemic. Based in London and with mining and production operations worldwide, the company is a leading a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys. 

For the nine months ended September 30, company revenues fell to $823 million from $1.2 billion a year ago, a decline of 33.5%. The tumble in silicon-based alloys, however, was greater, registering at 38.1% decline from $230 million a year ago to $142 million so far this year. Shipments declined similarly, falling 38.1% from 230,944 metric tons to 142,860. Prices for its silicon-based alloys, though, suffered only slightly in comparison. They declined 4.6% for the period, dropping from $1,582 per metric ton to $1,510. 

Based in London, Ferroglobe is among the largest producers of both 50% and 75% high-purity ferrosilicon, used to improve strength and quality of steel. High-purity products are used in the production of grain-oriented electrical steel and non-oriented electrical sheet and certain specialty steels. Electrical steel, or silicon steel, is a major magnetic material used in the production of electric motors, generators and transformers. 

The company was established in 2015 from the combination of the Spanish company Grupo Ferroatlantica and its U.S. subsidiary Globe Specialty Metals. In 2006, it acquired Globe Metallurgical, the largest silicon metal manufacturer in North America and largest specialty ferroalloy manufacturer in the U.S., operating eight plants in North America, Argentina, and China. See www.ferroglobe.com