Executive Interviews

Asian Metal: Thank Mr. John Pert to join our interview, and please briefly introduce your company.

John: Our company was established in 1989 in Greece, and we mainly engage in the supply of non-ferrous raw materials and we supply silicon metal and other raw materials such as master alloys to aluminum ingot plants in Greece.

Asian Metal: Please briefly review the demand of silicon metal in Europe in Q1 2024. What’s the main reasons for the demand change?

John: Generally speaking, the demand in Europe decreased in Q1 against last Q4. From our local customers, the demand of silicon metal in Greece decreased around 10% in Q1 against last Q4. The reason for the consumption decreases of silicon metal from aluminum ingot plants is mainly attributed to the bad sales performance of vehicles in Europe. Another reason is the Suez Canal issue, leading the supply of components for auto industry from Asia delayed. Consequently, the demand of silicon metal in Europe reduced.

Asian Metal: How about the current prices of silicon metal 5-5-3 in Europe?

John: The current prices of silicon metal 5-5-3 in Europe are hovering at EUR 2,400-2,500/t (USD 2,592-2,700/t) D.D.P as of late April. Given the high production costs for local producers in Europe, primarily due to the high cost of energy as well as of high interest rates, they are straggling to make a profit with selling prices below EUR 2,500/t (USD 2,729/t). Therefore, I don’t anticipate that local producers will be able to reduce prices further. However, the current prices of silicon metal 5-5-3 from China stand at USD 2,100/t CIF Rotterdam, which translates to USD 2,568 /t CIF after paying import duties, demonstrating that importing from China is a viable option. We had no imports from China in the whole 2023. For the rest of 2024 imports from China will represent around 30% of our total imports for this period of time. Due to the ongoing issues at the Suez Canal, the transit time from China to Greece has extended to almost 2 months. This has been causing significant delays in deliveries, making it difficult for us to rely solely on materials of Chinese origin.

Asian Metal: How do you foresee the demand in Q3 in Europe?

John: I believe the demand of silicon metal in Q3 would not revive due to the lower operation rate in aluminum ingot plants due to the heavy stocks of vehicles in Europe. Additionally, the Baltimore bridge collapse in the US might cause some auto components cargos to Europe to be delayed by a few weeks or months. I foresee the demand of silicon metal in Europe would maintain sluggish in Q3.

Asian Metal: What do you think the prices trend of silicon metal in Q3 in Europe？

John: Despite the high production levels maintained by European producers to keep prices stable, I foresee an increasing influx of silicon metal from other countries into Europe. This rising supply, particularly from China, could drive down the price of silicon metal 5-5-3 in Europe. In China, prices might further decline due to heavy stock levels and the need to offset increased freight costs to Europe. Consequently, the mainstream prices of silicon metal 5-5-3 are likely to decrease, influenced by the dropping import prices of Chinese silicon metal.

Asian Metal: What’s your new plan for your company?

John: We intend to cooperate with more Chinese silicon metal exporters or producers with good credits and maintain our long-term cooperation relationship with our existing suppliers and customers.