Shares of London specialty metals producer Ferroglobe PLC (GSM) fell 5.38% to $11.08 in Tuesday morning trading after J.P. Morgan downgraded the stock to "neutral" from "overweight."

The bank cited falling volumes for the company's silicon metals, silicon alloys and manganese alloys as a cause for concern while pricing for the products rises.

"We are now assuming a slower ramp for 2017, as Ferroglobe's focus on prices could be causing the company to lose some business," J.P. Morgan analyst Michael Gambardella wrote.

As a result, J.P. Morgan cut its 2017 full-year earnings estimate for the stock to 56 cents per share from 62 cents and is now expecting to see it post a 3 cent-per-share loss when it reports its fourth quarter earnings. It had previously forecasted Ferroglobe to report a breakeven quarter.

Ferroglobe recorded a 9 cent loss per share on roughly $365 million in revenue when it reported its third quarter earnings on Sunday.

J.P. Morgan has a $10 price target on the stock.

GSM Chart GSM data by YCharts

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