The upward pressure on production costs expected over the next five years in part reflects the low level of costs in the base year 2014. As international differences in ore and reductant costs have narrowed, electric power is becoming an increasingly important determinant of overall cost competitiveness, especially in the production of SiMn. New plants in Malaysia will present a major competitive challenge for existing producers in the region, many of who will be at risk of being displaced from the market.

Executive summary 1

Chapter 1

Introduction 11

1. Methodology 12

2. Production processes 12

3. Manganese ferroalloy capacity and output 12

Chapter 2

Main cost elements and key drivers 15

1. Introduction 15

2. Economic assumptions 16

      2.1 Exchange and inflation rates 16

3. Main cost elements 19

      3.1 Manganese ore and slag 19

      3.1.1 Sources of manganese ore 19

      3.1.2 Unit manganese ore consumption 20

      3.1.3 Manganese ore prices 20

      3.1.4 Sources of manganese slag 22

      3.1.5 Unit manganese slag consumption 23

      3.1.6 Manganese slag prices 23

      3.1.7 Overview of supply arrangements for individual plants 23

      3.2 Electric power 27

      3.2.1 Electricity consumption 27

      3.2.2 Unit consumption 28

      3.2.3 Electricity prices 28

      3.3 Reductants and other raw materials 30

      3.3.1 Reductant sources 30

      3.3.2 Unit consumption 31

      3.3.3 Prices 31

      3.3.4 Overview of supply arrangements for individual plants 32

      3.4 Other raw materials 33

      3.4.1 Sources 33

      3.4.2 Unit consumption 33

      3.4.3 Prices 34

      3.5 Labour 34

      3.5.1 Labour productivity 34

      3.5.2 Wage rates and employment costs 34

Chapter 3

Cost comparisons by individual plant 37

2. Comparisons of key cost elements 37

      2.1 Manganese units 37

      2.2 Reductants 41

      2.3 Electric power 45

      2.3.1 Unit electricity consumption 45

      2.3.2 Electricity rates 47

      2.3.3Total power costs 50

      2.4 Labour 52

      2.5 Delivery 56

3. Total production Costs 59

      3.1 Conversion costs 59

      3.2 Site costs 62

Chapter 4

Cost projections 67

1. Introduction 67

2. Main assumptions 68

Appendix A

Detailed Cost Profiles 77

冶金工业信息标准研究院