Thanks, in that case power is costing US$0.10/KWh. That is getting expensive power for operating a ferro alloy plant, its already more expensive than China, China is around US$0.08/KWH or US$319 of power to produce 1 tonne of ferro manganese. Ferro manganese uses far less power than silico manganese and considerable less than ferro silicon. But the material costs are higher for ferro manganese.
I see the table shows it as 44.6% of costs but that is not normal for ferro manganese, as power is usually just 20% to 30% of overall costs.
I note the table shows that GMC is paying only US$80/tonne for manganese. When was this Kupang Smelter table written, back in 2015 or 2016 when Mn was US$2/dmtu. The current cost for Mn is well above US$4.4/dmtu. High grade is over US$6/dmtu.
The latest MB price per tonne for Ferro manganese CIF Europe is currently Euro 1,100 which equates to US$1280, not US$1500 as per the table.
It takes two tonnes of Manganese ore to produce one tonne of ferro manganese, so if you use the current Mn price of US$4.4/dmtu you'll need to spend US$344 for Mn not US$166.49. Unless you own your own Mn mines then you'll need to pay market rates.
If you add the difference in Mn cost to the table you'll have a total cost of US$976, with an operating margin of US$300, but freight has not been added.
The Chinese are currently selling ferro manganese for US$904/tonne.
GMC Price at posting:
0.7¢ Sentiment: None Disclosure: Not Held
