High energy costs the problem for EU ferrosilicon, with the Iran war adding further pressure

Brussels – Useful for producing stainless steel, for electrode coatings, and for the manufacture of components for solenoid valves and injectors, ferrosilicon is a widely used alloy of great importance to the industrial and technological sectors, yet its market is in crisis, and the blame is said to lie with China. Mass production and below-cost sales are said to be the subject of unfair competition damaging to “Made in the EU” products. This, at least, is what French MEP Mathilde Androuët claims in her parliamentary question, which finds both confirmations and denials within the European Commission.

“The ferro alloys safeguard investigation showed that the sector, like many others, is facing
challenges other than harmful trade practices, such as high energy costs,” Trade Commissioner Maros Šefčovič said in his response. So, in this case at least, the finger should not be pointed at Beijing. It is true, he adds, that as far as ferrosilicon is concerned, “there was no increase in imports.” Therefore, even though the EU executive remains willing to support companies in the sector and “explore all possible options available under
the trade defence instruments,” in this specific case, “it is necessary to explore also other policy options to help EU silicon producers operate on a
sustainable basis.” 

Šefčovič’s response is from the last few days, but it refers to a situation reported at the end of January, that is, before the war in Iran broke out with all its repercussions on energy prices. If the problem with European ferrosilicon was a matter of cost, it could be exacerbated in the wake of the price rises triggered by the Israeli and US conflict in the Persian Gulf.