[SMM Stainless Steel Flash] Ferroglobe Threatens SA Smelter Shutdown Amid Power Cost Crisis

Published: Mar 31, 2026 20:00

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Ferroglobe’s South African unit has warned it may halt its remaining furnace operations unless it receives electricity tariff relief by Wednesday. The company, which produces ferrosilicon crucial for steel and stainless steel production, cited a 900% surge in electricity prices since 2007, which now accounts for over half of its total production costs. With an impending 9% Eskom tariff hike, continued operations are deemed financially unviable. Industry leaders highlighted a growing disparity: while government tariff relief talks have prioritized ferrochrome producers, other alloy smelters are left exposed. If a workable tariff (estimated at 62c/kWh) is not granted, Ferroglobe will initiate widespread retrenchments in early April and may shift production entirely out of the country.

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