Kyle Mowery's questions to Ferroglobe (GSM) leadership • Q4 2024
Question
Asked about the potential impact of European quotas on production costs, the current effects of US ferrosilicon rulings on imports and pricing, and the required rate of return for the proposed new US facility.
Answer
Executives explained that European quotas would increase capacity utilization and improve cost absorption. In the US, Russian ferrosilicon imports have dropped, and while inventories initially impacted prices, they are now depleting, and Ferroglobe is signing new contracts. For the new US facility, they expect a return significantly higher than their cost of capital, driven by superior furnace technology.