Brazilian ferroalloys producer Cia. de Ferro Ligas da Bahia
(Ferbasa) saw first-quarter earnings fall year on year on
reduced exports and increased costs.
Net income in the three months
ended March 31 totaled 8.6 million reais ($4.2 million)
compared with 20.4 million reais in the first quarter of 2012.
Total revenue amounted to 185.7 million reais ($91.2 million)
in the quarter, up 1.8 percent from last year.
Sold volumes stood at 63,925
tonnes, down 2 percent year on year. Domestic sales totaled
144.4 million reais ($70.9 million), up 3.6 percent year on
year, while import revenue stood at 41.3 million reais ($20.3
million), down 19 percent in the same comparison.
Ferrosilicon exports fell 19.2
percent year over year to 11,108 tonnes from 13,751 tonnes in
the first quarter of 2012, while low-carbon ferrochrome
shipments fell 53.5 percent to 838 tonnes in the same
ferrochrome shipments rose 69.2 percent to 1,166 tonnes.
"The results were negatively
affected by the payment of additional energy fees (due to the
use of thermoelectric power plants), which amounted to 7.1
million reais ($3.5 million)," the Bahia-based company said.
"We also considered the payment of 7.3 million reais ($3.6
million) as a result of a collective agreement with (local)
The company also faced extra
costs due to an operational problem with its ferrosilicon
furnace, caused by changes in technical specifications imposed
by the supplier, Ferbasa said. Losses are still being
calculated and will be negotiated with the furnace
Total first-quarter ferroalloy
production in 2013 was 66,038 tonnes, up 11 percent year on
year from 59,497 tonnes. High-carbon ferrochrome accounted for
most of Ferbasas production, at 36,069 tonnes. This
represented a 29.4-percent year-over-year increase.
production amounted to 19,883 tonnes in the period, down 8.8
percent year over year, as low-carbon ferrochrome output fell
3.9 percent to 4,918 tonnes.
The high-carbon ferrochrome
price in the period was negotiated at $1.12 per pound. For the
second quarter of 2013, the company announced an increase to
$1.27 per pound.
A version of this article was first published by AMM sister
publication Metal Bulletin.