[Ferro-Alloys.com] Vertically integrated ferroalloy producer OM Holdings Ltd’s (OMH) ferroalloy smelting plant in Sarawak’s Samalaju Industrial Park has recorded higher production volumes for ferrosilicon, manganese alloys and manganese sinter ore in the second quarter ended June 30, 2022 (2QFY22) as compared to 1QFY22.

For the quarter under review, the Sarawak plant produced 35,004 tonnes of ferrosilicon, 60,767 tonnes of manganese alloys and 30,446 tonnes of manganese sinter ore, representing an increase of 3.2 per cent, 0.4 per cent and 18.7 per cent, respectively, when compared to the preceding quarter.

In terms of sales volume, the plant saw an increase of 23 per cent sequentially for ferrosilicon to 37,779 tonnes in 2Q2022 due mainly to delayed shipments at the end of March 2022 being carried forward to the quarter under review.

Sales volume for manganese alloys, however, declined 9.5 per cent to 52,172 tonnes in 2Q22 from the previous quarter.

Meanwhile, the company has successfully modified and converted two of its four idled ferrosilicon furnaces to produce manganese alloys. Hot commissioning and performance testing for the two furnaces commenced on 27 June and 25 July, respectively, with production currently ramping up.

Upon full commercial production of the converted furnaces, the Sarawak smelting operations will have an annual production capacity of 333,000 to 400,000 tonnes of manganese alloys. The plant also has an annual production capacity of approximately 120,000 to 126,000 tonnes for ferrosilicon and 250,000 tonnes for sinter ore.

The remaining two idled furnaces are currently undergoing conversion to produce silicon metal. Barring any unforeseen circumstances, hot commissioning and testing works are expected to commence in December 2022.

Executive chairman and chief executive officer of OMH, Low Ngee Tong said “Major scheduled maintenance works at our Malaysian operations have commenced last month (June 2022), beginning with manganese alloy furnaces, and to be followed by ferrosilicon furnaces.

“The furnaces scheduled for major maintenance will be shut down in stages to minimise disruptions to ongoing operations. As current works are going according to plan, our smelting production guidance for the year remains unchanged.”

Upon completion of the conversion works, the plant will have a design capacity to produce 21,000 to 24,000 tonnes of silicon metal per year.

The Company’s South African mining operations through Tshipi é Ntle Manganese Mining (Pty) Ltd – the Tshipi Borwa manganese mine operator in which OMH has an effective 13 per cent interest – registered a decline of 3.5 per cent in shipments to 780,275 tonnes for the quarter under review as compared to the preceding quarter.

The company reported that prices for ferrosilicon and silicomanganese have softened due to reduced demand from steel mills amid higher energy costs and a weaker global steel market.

As data from the International Manganese Institute showed, world steel production between May and June 2022 had decreased 6.4 per cent to 334.2 million tonnes as compared to the corresponding months of 2021, led by the continued slowdown in Chinese steel production.

A total of 422,380 tonnes of ores and alloys were transacted during the quarter under review, representing an increase of 4.2 per cent from the previous quarter.

Given the weaker demand in the global market, the Fastmarkets manganese ore 44 per cent index, CIF China, closed 6.8 per cent lower at US$7.27 per dry metric tonne (dmtu) at the end of June 2022 from US$7.80 per dmtu at the end of March 2022.

Ferrosilicon prices decreased 13.5 per cent to US$1,925 per tonne CIF Japan at the end of June 2022 from US$2,225, while silicomanganese prices fell 31 per cent US$1,225 per metric tonne CIF Japan at the end of June 2022 from US$1,775.

• [Editor:tianyawei]