Ferroglobe ain’t what it used to be

OMG, Ferroglobe.

In the third quarter of 2016, Ferroglobe posted a net loss of $(28.5) million. Excluding an inventory impairment charge and an additional impairment charge for South Africa, the company posted an adjusted net loss of $(14.6) million.

Ferroglobe reported an EBITDA loss of $(3.2) million for the third quarter due to an inventory impairment charge of $4.3-million in Venezuela and China, and a further $9-million impairment charge of the company’s mining assets in South Africa. Excluding these charges Q3 2016 adjusted EBITDA was $12.8-million.

Net sales in the third quarter totaled $365-million, down from $398-million sequentially. In the third quarter, Ferroglobe’s average selling price for silicon metal declined by 6% from the previous quarter’s average selling price, primarily due to pressure from low-priced imports. During this period, the average selling price for silicon-based alloys decreased 3% from the second quarter of 2016 and the average selling price for manganese alloys increased 11% from the second quarter of 2016.

In terms of sales volumes, silicon metal experienced a decline of 5% quarter over quarter, silicon alloys experienced a decline of 7% quarter over quarter, and manganese alloys experienced a decline of 16% quarter over quarter, reflecting some seasonality of demand in summer months.

The company  shipped 259,016 mt of silicon metal in the first nine months of 2016 and 81,091 mt in the quarter ended Sept. 30, 2016 vs. 85,242 mt in the quarter ended June 30, 2106. Silicon alloy shipments were 218,271 mt in the first nine months of 2016, and 69,539 mt in the quarter ended Sept. 30, 2016 vs.74,786 mt in the quarter ended June 30, 2016. Manganese alloy shipments were 193,985 mt in the first nine months of 2016, and 59,368 mt in the quarter ended Sept. 30, 2016 vs. 70,756 mt in the quarter ended June 30, 2106.

The average selling prices were:

silicon metal: $2,240 per mt ($1.02 per lb) for the first nine months of 2016; $2,090 (95¢) for the quarter ended Sept. 30, 2016 and $2,230 ($1.01) for the quarter ended June 30, 2016.

silicon alloys: $1,421 (64¢) for the first nine months of 2016; $1,391 (63¢) for the quarter ended Sept. 30, 2106, and $1,430 (65¢) for the quarter ended June 30, 2016.

manganese alloys: $801 (36¢) for the first nine months of 2016; $865 (39¢) for the quarter ended Sept. 30, 2016, and $777 (35¢) for the quarter ended June 30, 2015.

 

 

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