Given the lower sales prices of manganese, Mexico’s Minera Autlan recorded net losses of $12.5 million in the first quarter of the year, a figure that contrasted with earnings of $26.4 million in the same period last year, the company informed the financial markets.
The volume of ferroalloys registered a slight reduction of 0.9 percent, totaling 57,300 metric tons. Although due to the lower sales price, in value it decreased 26.1 percent to $116 million.
EBITDA totaled $13.5 million in Q1, 78.8 percent or $50.2 million less compared to $63.7 million in the same period of 2022.
Autlan said that the low prices are due to the fact that manganese ore fell 8.0 percent in the price in China due to excess supply and inventories close to the historical maximum.
In addition, US manganese ferroalloy prices declined on weak steel demand and high ferroalloy imports from Malaysia and South Africa.
Although he highlighted that some producing countries have stopped their operations, Autlan said, “will contribute to reducing the world supply in the following months.”
In the first quarter, the company laid off 44 workers to close the quarter with 1,388 workers.