EU Imposes Safeguard Measures on Ferroalloy Imports; Impact on Elkem

EU Safeguard Measures

The European Union has announced the implementation of safeguard measures on imports of certain ferroalloys from third countries, including those from the European Economic Area. These measures, effective from 18 November 2025, will remain in place for three years, concluding on 17 November 2028. The decision follows a safeguard investigation initiated in December 2024 to protect EU ferroalloy producers from increased imports.

Tariff Rate Quotas

The measures involve country-specific tariff rate quotas (TRQs) for different types of ferroalloys, limiting the volume of duty-free imports. Imports exceeding these quotas may still enter duty-free if priced above a set threshold. Otherwise, duties will apply based on the difference between the import price and the established threshold. The European Commission will hold trimonthly consultations with Norway and Iceland to assess the impact of these measures.

Impact on Elkem

Elkem, a major producer of ferrosilicon in Norway and Iceland, exports approximately 160,000 metric tons annually to the EU, primarily to steel producers. The safeguard measures could reduce Elkem's sales volumes to the EU, but this may be offset by sales to other regions and potential price increases in the EU market. The net impact on Elkem's earnings will depend on the extent of these price changes.

Exclusions

Silicon metal is notably excluded from the list of products affected by the EU's safeguard measures, allowing its continued import without the new restrictions.