Globe Specialty Metals Inc. may have recorded a
fiscal-year loss, but the company is optimistic about a better
year ahead on expectations of strengthening demand, pricing and
"As we look forward to the first quarter of fiscal 2014, we
expect continued improved performance," chief executive officer
Jeff Bradley said in an earnings conference call with analysts
End-market demand for
the New York-based silicon producers products continue to
grow at a faster clip than gross domestic product gains, he
said, thanks to strength in the consumer economy as well as the
homebuilding, solar and automotive sectors, with automotive in
particular gobbling up large amounts of silicon metal for
starting to see a more positive trend in the spot price of
silicon metal," he said, due in part to interim import duties
being imposed July 22 on shipments of Chinese silicon into
amm.com, July 23).
Bradley declined to
further discuss Globes outlook for pricing and tonnages
because he said the company was "getting close to pricing
The Canadian trade
case also had negative consequences, Globe chief financial
officer Joseph Ragan said, pointing out that Canada saw an
"upsurge" in imports of Chinese silicon ahead of the interim
duties being put in place.
Bradley said that
Globe is seeing improvements in its silica fumes business,
notching higher prices in the export and spot markets thanks to
demand from the oilfield sector as well as continued strength
in the refractory and concrete markets in North America (
amm.com, Feb. 8). Silica fume is a byproduct of
the smelting process used in concrete.
include a better performance at Globes Alden Resources
LLC, a specialty metallurgical coal mining company in Kentucky,
which is "back online and running at historic rates," Bradley
said in response to questions about how the unit was performing
after production curtailments.
And while the lockout
at Globes silicon metal facilities in Bécancour,
(amm.com, July 8), the company is talking with the
union representing workers at the plant, Bradley said. "We ...
look forward to a good outcome eventually." He declined to
provide details on negotiations.