MIAMI--(BUSINESS WIRE)--CC Metals and Alloys, LLC (“CCMA”) today announced that it will be shutting down its ferrosilicon production operations as of July 1, 2020 due to unfavorable market conditions. At this time, there is no prediction on when operations will resume.
The decision to shut down operations is a direct result of the poor market and pricing conditions and the economic impact of the COVID-19 pandemic. In the past year or so, the ferrosilicon industry has been facing challenging market conditions caused by imports of low-cost products that do not reflect the US market. These imports have been used in the determination of price indexes for sales in the United States and have substantially affected the business and finances of US producers. CCMA and its trading partner Felman Trading Americas, Inc (“FTA”) have also been severely impacted by the economic downturn resulting from the COVID-19 pandemic as many of its customers have been forced to shut down or reduce their operations. The demand for ferrosilicon products has since reduced drastically. Amid the pandemic losses, low-cost imports of ferrosilicon have continued to enter the US market and cause the price of ferrosilicon to drop even more. Once again last week, price indexes dropped sharply and have driven down prices for ferrosilicon products below costs of production. Unfortunately, the US ferroalloys industry does not have any protections against pricing abuses and manipulations from foreign sellers such as other industry-related products (like steel) does. Had the US government imposed import duties on ferroalloys products from foreign sellers, the ferroalloys industry would probably not be as affected.
Shutting down operations was the only reasonable option for CCMA but yet the most difficult decision to be made. The shutdown of CCMA’s operations will sadly result in the layoff of more than eighty (80) plant workers in Calvert City for an unforeseeable period of time. The layoff represents approximately 77% of CCMA’s workforce.
CCMA management remains optimistic that the current state of the economy and pricing conditions will improve soon and operations will be resumed at the earliest possible time.
In the meantime, all necessary measures were implemented to make this transition as smooth as possible for the customers, suppliers, and employees.
About CC Metals and Alloys, LLC:
Founded in 1949 and headquartered in Calvert City, KY, CC Metals & Alloys, LLC (CCMA) is a leading producer and supplier of high-grade ferrosilicon alloys, elements essential in the manufacturing of iron and steel. CCMA’s 400,000 square foot, ISO 9001 certified facility utilizes three submerged arc electric furnaces, which operate around-the-clock, to produce over 100,000 metric tons of various types of ferrosilicons. The company offers over 35 competitively priced products including 18 different ferrosilicons and more than 20 different magnesium ferrosilicon inoculants, which are crushed and sized on-site to meet its clients’ exact specifications. Through its trading partner, Felman Trading Americas, Inc. (“FTA”), CCMA has long supplied a significant portion of the demand needs for ferrosilicon in the United States, as well as in other countries in North, Central and South Americas. For more information, please visit: http://www.ccmetals.com/