Ferroglobe Sees Boost in Q2 Silicon and Manganese Alloy Sales Following French Plant Restart

Ferroglobe, a leading Spanish producer of silicon and ferro-alloys, reported a significant rise in sales volumes and earnings for the second quarter of 2024, primarily driven by the resumption of operations at its French facilities in April. The restart bolstered production levels, resulting in a 124% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching $57.7 million for the quarter. However, this figure reflects a 44% decline compared to the same period last year.

Silicon metal shipments surged to 62,872 tons, marking a 24.1% year-on-year increase and an 18.2% rise from the first quarter of 2024. This growth was largely attributed to stronger sales in Europe, the Middle East, and Africa. The average sales price for silicon metal also saw a modest 2.8% increase from the previous quarter, reaching $3,244 per ton, though it remained 15.8% lower than in the previous year.

Despite a decrease in demand in the U.S., shipments of silicon-based alloys reached 46,953 tons, a decrease of 5.1% year-on-year and 8.2% from the first quarter. Nonetheless, the average selling price for these alloys rose by 2.4% to $2,241 per ton in the April-June period.

Manganese-based alloys experienced a significant boost, with shipments totaling 81,464 tons, up 30.2% from the previous year and 30.7% from the previous quarter. The average sales price for these alloys increased by 12.9% to $1,204 per ton.

Ferroglobe's strategic decision to increase manganese ore purchases in the first quarter, taking advantage of a market disruption caused by weather-related shutdowns of South32's manganese ore mine in northern Australia, allowed the company to secure ore at below-current market costs.

Looking ahead, Ferroglobe anticipates that higher prices for its metals and alloys will positively impact its performance in the third quarter. However, the company remains cautious, noting that market dynamics may shift following the end of the summer holiday period in Europe.