Lower domestic demand, falling prices, and export constraints weigh on Brazilian ferro-alloy producer’s annual results.
Ferbasa, Brazil’s largest ferro-alloy producer, reported a 1.5% year-on-year decline in total ferro-alloy production in 2024, reaching 301,208 tonnes, as global steel production slowed. The company manufactures ferro-chrome (high- and low-carbon), ferro-silicon, high-purity ferro-silicon, and ferro-silicon chromium, all used in the steel industry.
Silicon alloy production rose 6% year-on-year to 99,836 tonnes, while chromium alloy production fell 0.5% to 201,372 tonnes. However, Q4 chromium output dropped 3.6%, weighing on total output. In contrast, Q4 silicon alloy output increased 9.7% year-on-year to 21,871 tonnes but fell 21.3% from Q3 levels.
Domestic Sales Drop 8.3% While Exports Rise Modestly
Ferbasa reported a 1.8% decline in total ferro-alloy sales, reaching 268,623 tonnes in 2024. The drop was led by an 8.3% fall in domestic sales, as high steel imports reduced local steel output and demand for alloys. Exports rose by 5.3%, with chrome alloy exports increasing 12.5%, while silicon alloy export volumes remained stable year-on-year. Despite logistical challenges, overseas sales helped offset weak internal demand.
Falling Ferro-Alloy Prices Cut Revenue by Over 8%
Revenue from ferro-alloys fell 7.6%, contributing to an 8.1% drop in total net revenue. Ferbasa cited an 11.6% decline in average dollar prices for ferro-alloys. The company pointed to slowing stainless steel production in China and broad global economic stagnation as the primary causes of the price drop. Additionally, it noted US anti-dumping measures pressured silicon alloy pricing in North America.
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