Ferroglobe's Q2 2025: Navigating Contradictions in Trade Measures, Earnings Guidance, and Market Uncertainty

Market uncertainty and trade measures, 2025 guidance and earnings expectations, volume and price uncertainty, impact of trade measures, market uncertainty and volume forecasts are the key contradictions discussed in Ferroglobe's latest 2025Q2 earnings call.



Market Uncertainty and Trade Policies:
- Ferroglobe PLC withdrew its 2025 guidance due to uncertainties in global trade policies and tariff structures.
- The decision was driven by limited visibility on trade measures, the impact of Chinese silicon metal imports, and the outcome of ongoing trade investigations.

Increased Volumes and Revenue:
- Ferroglobe reported a 27% increase in volumes and a 26% increase in revenue for the second quarter compared to the first quarter.
- This growth was primarily due to the restart of the French operation and an increase in demand from the aluminum segment in the U.S.

Profitability Improvement:
- The company's adjusted EBITDA rebounded to a positive $22 million in the second quarter, up from a loss in the first quarter.
- This improvement was attributed to better cost absorption, lower energy costs, and increased production levels.

Impact of Chinese Imports:
- European silicon metal prices declined by approximately 20% in just one month due to a substantial increase in imports from China.
- This led to market disruption and affected visibility into future supply and pricing.

U.S. Market and Trade Policies:
- Ferroglobe saw the highest volume of ferrosilicon sales in the past 8 quarters, supported by U.S. trade actions against Asian ferrosilicon imports.
- The company expects these trade actions to continue benefiting domestic producers in the coming quarters.