Ferroalloy production cost composition

Ferroalloys are mainly produced in electric furnaces, which consume high power and require abundant and cheap power resources. France became the main producer of ferroalloys in the early stage, and Norway became the largest exporter of ferroalloys in the 1980s – 1990s, all of which were based on the rich local hydropower resources. The production of ferroalloys is an energy-intensive process, and energy accounts for a large proportion of the cost structure of ferroalloys. China is one of the ferroalloy exporters.

production of ferroalloy

                       production of ferroalloy

The production cost of ferromanganese is mainly composed of the procurement cost of manganese ore, electricity and coke, of which the cost of manganese ore accounts for about 60%, the cost of electricity accounts for about 20%-25%, and the cost of coke accounts for about 10%-15%. In addition, in the production of manganese ferroalloy, in addition to using domestic low-phosphorus, low-iron, low-sulfur and low-silicon manganese ore, in order to improve the furnace grade of raw materials, increase the recovery rate of manganese element, reduce power consumption and production cost, it is necessary to purchase some imported ore and domestic ore for smelting. Therefore, fluctuations in manganese ore prices, electricity charges and coke prices have a greater impact on the production of manganese ferroalloys.

Similar to ferromanganese alloys, chrome ore also accounts for a large proportion of the production cost of ferrochrome. There are very few chrome ore resources in my country. In 2013, the consumption of chrome ore was nearly 14 million tons, and the domestic supply was only about 2 million tons, and the rest was solved by imports. In my country’s ferrochromium production cost, the cost of chrome ore accounts for about 60%, the cost of electricity accounts for about 25%-30%, and the cost of coke accounts for about 10%-15%.

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.

Ferroalloy production

                             Ferroalloy production


In the production process of ferroalloy, energy consumption and electricity consumption account for a large proportion of the production cost. Our factory should pay attention to raw material prices and electricity costs in a timely manner, and arrange production reasonably. Importers should also pay attention to changes in market prices and arrange orders reasonably.

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