There seems to be a surprise every day. The latest bombshell that everyone was talking about is the reported deal between Glencore and Ferroglobe. The buzz is that Glencore purchased Ferroglobe’s European inventory of silicomanganese, high-carbon ferromanganese, and ferrosilicon and sold most, if not all, of it in Russia. The silicomanganese was particularly important after the Russian government imposed dumping duties on Ukrainian silicomanganese earlier this year.
But that’s not all, I hear that Glencore has reach an arrangement whereby it will buy Ferroglobe’s European production of silicomanganese, high-carbon ferromanganese and even ferrosilicon leaving Ferroglobe’s silicon metal and specialty ferrosilicon businesses. The deal, however, excludes Ferroglobe’s customers in Spain, its home market and Portugal.
This way, Ferroglobe gets the money immediately and doesn’t have to maintain a sales presence in Europe.
There are also rumors that Glencore, which sells Vale’s manganese ore, is providing Ferroglobe with manganese either on a tolling basis or a sales basis.
Ferroglobe is also thought to be looking to sell its power assets to streamline the company and concentrate on profitability.