Buyer takeaway (26 October 2026): Elkem announced a new electricity agreement for its Icelandic ferrosilicon plant on 22 October. It extends the power arrangement to 2039 and covers 127 MW. This gives the plant a longer planning horizon, but the announcement is not a production schedule, shipment guarantee or forecast of ferrosilicon prices.
What was announced
Elkem and Icelandic power supplier Landsvirkjun signed a new power purchase agreement replacing their existing contract. Elkem says the contract runs until 2039, covers 127 MW and has a take-or-pay structure. From April 2029, its pricing includes a fixed floor and a component linked partly to the ferrosilicon market price. The companies describe greater operating flexibility. Elkem also says the agreement forms part of its ongoing strategic review of the Iceland plant; the review’s outcome was not announced.
What matters to a buyer
Power is an important input for electric-furnace alloy production. A longer electricity contract may help a producer plan, but contracted power is not the same as metal already made or available for a particular shipment. The release gives no buyer-specific allocation, current inventory or new delivery commitment. It also does not establish a general market price for ferrosilicon.
If you are sourcing FeSi, ask the supplier for the quoted grade and size, available quantity, shipment window and the validity date of the offer. Compare those answers against your own consumption plan. For a purchase from any producer, confirm plant origin and lot documentation rather than assuming that an industry announcement applies to your order.
How to use this announcement
- For supply monitoring: record the contract end date and check later producer updates for the strategic review and actual operating status.
- For procurement: keep power-contract news separate from a binding quotation and written shipment terms.
- For quality: specify the grade and acceptance method independently of any supply headline. Our sampling FAQ explains why a single sample may not represent a full lot.
Scope: This article reports an Elkem–Landsvirkjun agreement, not any change to Xinrui’s production or supply. No future output or price movement is implied.
Sources
- Elkem, company announcement, 22 October 2026.
- Elkem Iceland, local announcement, 22 October 2026.
