Ferroglobe, a prominent Spanish producer of silicon and ferro-alloys, reported a strong increase in sales volumes and earnings for the second quarter of 2024, fueled by the resumption of operations at its French facilities in April. This restart significantly boosted production, leading to a 124% rise in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), totaling $57.7 million for the quarter. However, this marks a 44% decline compared to the same period last year.
Silicon metal shipments jumped to 62,872 tons, representing a 24.1% year-on-year increase and an 18.2% rise from the first quarter of 2024. The growth was largely driven by increased sales in Europe, the Middle East, and Africa. The average sales price for silicon metal edged up by 2.8% from the previous quarter to $3,244 per ton, though it remained 15.8% lower than the same period last year.
Despite weaker demand in the U.S., shipments of silicon-based alloys reached 46,953 tons, down 5.1% year-on-year and 8.2% from the first quarter. Nevertheless, the average selling price for these alloys rose by 2.4% to $2,241 per ton during the April-June period.
Manganese-based alloys saw a substantial increase, 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 climbed by 12.9% to $1,204 per ton.
Ferroglobe strategically increased its manganese ore purchases in the first quarter, capitalizing on market disruptions caused by weather-related shutdowns at South32's manganese ore mine in northern Australia. This allowed the company to secure ore at below-market costs.
Looking ahead, Ferroglobe expects higher prices for its metals and alloys to positively impact its performance in the third quarter. However, the company remains cautious, recognizing that market dynamics could shift as Europe exits the summer holiday period.
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