This unprecedented global supply crunch, said UOB Kay Hian Research, has continued to push ferroalloy prices up. Consequently, the brokerage is expecting strong earnings ahead for OMH, despite the movement control order disruption.
KUALA LUMPUR: Integrated manganese player OM Holdings Ltd
(OMH) could be in for bumper earnings as high ferroalloy prices continue to be supported by a shortage in supply.
Analysts noted that the ongoing power crisis, especially in Europe, China and India, has put further pressure to the current supply constraints for ferroalloys. Record high electricity and coal prices in Europe has led some producers to either cut or completely shut down their production for good, despite the fact that ferroalloy prices are currently at an all-time high.
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