OMH is the only company on the ASX that produces ferrosilicon, and OMH is also one of the worlds largest producers. Investors chase lithium and cobalt but prices received and profits made is nothing compared with the volumes and the prices of ferrosilicon. The fact that it takes between 8,000 to 9,000 kWh of power to produce one tonne then the power component is the most important and largest input cost.
SCORE Sarawak has the cheapest power in Asia and OM Sarawak has the largest power usage for producing alloys. and is the largest producer of FeSi and produces 4 x Pertama alloys.
Now in the USA ferrosilicon is at US$3/lb and over ie. US$6,600/tonne.
Ferrosilicon in Asia will be at similar levels shortly.
The US commodity grade 75% ferrosilicon market remains as tight as a drum with more and more business booked at the $3.05 per lb level. The old benchmark was $2.75.
