Elkem is Planning Temporary Ferrosilicon Production Capacity Adjustments

OSLO, Norway, May 10, 2019 /PRNewswire/ -- As a consequence of the sharp decrease in ferrosilicon prices and over-supply in the European market, Elkem is planning temporary reductions of production capacity.

Since the peak in February 2018, the EU market price for standard grade ferrosilicon has dropped steadily to a price level not seen since 2016. The current low spot price is mainly a result of over-supply of ferrosilicon into the EU market and weaker steel production. Especially the increasing imports from Asia have created pressure on EU standard ferrosilicon prices, which are now lower than local prices in Asia.

The first capacity adjustment is planned in June, when one furnace in Elkem Iceland will be temporary idled. Further capacity adjustments will be considered based on market development.

Elkem will honour contractual obligations and supplies to long term specialty ferrosilicon customers, but limit spot sales until the market prices recover.

For further information:

Géstur Petursson, Plant Manager, Elkem Iceland, [phone], [e-mail]

Kári Marís Guðmundsson, Global Sales Manager, Ferrosilicon, Elkem ASA, [phone], [e-mail]

Johannes Dobson, Vice President Corporate Communication and Public Affairs, Elkem ASA, ([phone], [e-mail]

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