OFZ Slovakia cuts ferro-alloy output due to surging power prices

October 08, 2021 / www.metalbulletin.com / Article Link

Slovak ferro-alloys producer OFZ Slovakia has cut more than half of its ferro-alloy production with immediate effect due to energy prices that have surged more than six-fold recently, an industry source told Fastmarkets.

The company, which produces ferro-silicon and manganese alloys, has shut four out of its seven operating furnaces, including two ferro-silicon furnaces, a silico-manganese furnace and a smaller refining furnace. Each of the ferro-silicon furnaces was working at a rate of 1,000 tonnes per month, while the silico-manganese furnace was running at a rate of 2,000 tonnes per month.
The move comes at a time of record-high energy prices across Europe, record-high ferro-silicon prices and near record-high manganese alloys prices since Fastmarkets started to assess those markets at the start of 1997. OFZ's remaining three furnaces are producing 3,000 tonnes per month of high-carbon ferro-manganese, 2,000 tonnes per month of silico-manganese and 1,000 tonnes per month of ferro-silicon.

"OFZ has some stocks of the affected ferro-alloys production to supply long-term contracts to customers until the end of November," the source said. "December is a bit uncertain,...

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