Ann: Share Placement to JFE Shoji Corporation, page-98

Whilst the selling price for Ferrosilicon is currently US   as shown on the OM Holdings website it should be noted that costs of raw materials such as silica and coke are lower.
Current domestic FeSi price in China is 6678.57 yuan/tonne  = US$937/tonne

"On December 18, the benchmark price of ferrosilicon was 6678.57 yuan/ton, a decrease of -0.74% compared with the beginning of this month (6728.57 yuan/ton)."

"The domestic market price has loosened slightly, but the exchange rate has fallen. The export quotation has not changed much. It is temporarily stable at FOB72#1230-1270 and 75#1310-1350 US dollars/ton."

Using the FeSi domestic price of US$937/t  x 25% export tax = US$1,171/tonne for Chinese FeSi 72 grade, so just US$60 to $100 profit.


"Due to the cheap price of silica, energy consumption accounts for the largest proportion in ferrosilicon production. Production of one ton of ferrosilicon raw materials and power consumption are: 1780-1850 kg of silica, 890-930 kg of coke, 220-230 kg of steel scrap, 45-55 kg of electrode paste, and power consumption of 8400-9000kWh/t. Electricity accounts for about 70% of the cost of ferrosilicon."

With the reduction of costs of silica, coke etc OM Sarawak should be making US$
current power cost for 9,000 KWh = US$0.032 x 9000 = US$288/tonne FeSi
https://www.metal.com/Coke 930kg of metallurgical coke at US$477/t =  US$443/t FeSi
1850Kg Silica, Previous Adrian had stated that the price for quartzite (silica) US$60/t = $111/t FeSi
https://iscrapapp.com/metals/shreddable-steel/ 230kg of steel scrap at US$220/t  = US$50/t FeSi
Electrode paste cost at US$500/t  for 55kg = US$27.5/t FeSi

OM Sarawak Total costs about US$920/tonne.
OM Holdings website for weekly prices shows FeSi US$1,275/tonne so OMH should still be making US$300/t profit. Mostly due to lower exchange rate and lower materials inputs.
Hopefully this is the bottom.