[Ferro-Alloys.com] OM Holding Limited released its September 2020 Quarterly Production and Market Update recently.
Production output for the quarter ended 30 September 2020 of 37,069 tonnes of ferrosilicon (“FeSi”) and 56,185 tonnes of manganese alloys comprised mainly silicomanganese (“SiMn”) and high carbon ferromanganese (“HCFeMn”) .
A total of 45,052 tonnes of FeSi and 49,720 tonnes of manganese alloys were sold during the quarter ended 30 September 2020.
An additional ferrosilicon furnace was placed on maintenance during the current quarter. Limitations on hiring new foreign workers continued to impact the Plant’s ability to operate at full capacity. The conversion of 2 idled ferrosilicon furnaces to produce manganese alloys is currently at the planning stage.
OM Sarawak owns a Ferroalloy Smelting Plant in the Samalaju Industrial Park in Sarawak, Malaysia (the “Plant”). The Plant consists of 8 main workshops with a total of 16 units of 25.5 MVA furnaces, of which 10 units are allocated for the production of FeSi and 6 units are allocated for the production of manganese alloys. The Plant has a design capacity to produce approximately 200,000 to 210,000 tonnes of FeSi and 250,000 to 300,000 tonnes of manganese alloys per annum. The Plant also consists of a sinter plant that has a design capacity to produce 250,000 metric tonnes of sinter ore per annum.
The conversion of 2 idled ferrosilicon furnaces for the production of manganese alloys is currently at the planning stage. The conversion is motivated by a need to align product mix with market demand, and to generate the highest return per furnace over the full price cycle. This will also have the added benefit of creating more synergies with manganese ore production. Furnace conversions had been performed earlier in 2016 for 6 furnaces.
As at 30 September 2020, 12 out of 16 furnaces were in operation with 6 furnaces producing FeSi and 6 furnaces producing manganese alloys. Of the remaining 4 FeSi furnaces, 2 have been idled with the other 2 FeSi furnaces placed on regular maintenance.
During the quarter ended 30 September 2020, FeSi production volumes decreased by 16% while manganese alloys production reduced marginally by 3%. An additional ferrosilicon furnace was placed on scheduled maintenance during the current quarter which resulted in lower FeSi production volume.
The sales volumes for both FeSi and manganese alloys for the quarter ended 30 September 2020 increased by approximately 45% and 11% respectively. The significant increase in FeSi sales volumes were mainly due to higher demand with a nascent recovery in regional steel production.
Platts reported that prices of FeSi to Japan closed higher at US$1,060 per metric tonne at the end of September 2020, an increase from US$975 per metric tonne at the end of June 2020. The increase was mainly due to reduced FeSi exports from China to the global market as steel production activities recover omestically, tightening FeSi supply outside China.
Source: OM Holding Limited Click here for the full report.
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