The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Ferroalloys Market Growth & Trends
The global ferroalloys market size is projected to reach USD 69.0 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 5.5% over the forecast period. The increasing production of steel in the Asia Pacific, on account of rising construction activities in the region, is a significant factor influencing the global market growth. Ferromanganese, ferro silicomanganese, ferrochrome, and ferrosilicon are the principal ferroalloys that are commonly used in the industry as principal inputs for steel manufacturing.
Among these products, ferro silicomanganese is expected to register the fastest growth over the coming years owing to its extensive consumption as a desulfurizing and deoxidizing agent in carbon steel manufacturing. Ferrochrome is added to Stainless Steel (SS) to impart corrosion resistant properties and give the aesthetic appearance. Therefore, the product is expected to register a healthy growth, in terms of volume demand, as the SS industry is likely to register a strong growth from 2021 following the global pandemic in 2020. Asia Pacific dominated the global market in 2019.
There is a huge market in China owing to significant steel production in the country. In fact, according to World Steel, China manufactured more than 50% of the global crude steel in 2019. As a result, China constituted more than 50% of the product demand, in terms of volume, in 2019 and is expected to maintain its dominant position over the coming years. On the other hand, ferroalloy demand is predicted to witness a sharp decline in 2020, especially in North America and Europe, as the manufacturing activities and industrial production were severely affected in the first half of 2020 owing to the COVID-19 outbreak.
Asia Pacific is also expected to witness a considerable decline in its GDP owing to the pandemic. However, relatively quick recovery of industrial production in China is expected to soften the blow of the COVID-19 pandemic for ferroalloy suppliers in the Asia Pacific, as China is likely to display a positive manufacturing outlook in the second half of 2020. The major ferroalloys producing countries include China, India, South Africa, Kazakhstan, Ukraine, Norway, and Russia. These countries have abundant availability of chromite and manganese ores, which are the primary raw materials required for product manufacturing.
Ferroalloys Market Report Highlights
- Asia Pacific led the market in 2019 accounting for the largest revenue share of 60.3% as the region is the world’s largest producer of steel
- Cast iron application segment is expected to record the fastest CAGR of 4.2%, in terms of volume, from 2020 to 2027 owing to the rapidly expanding manufacturing sector in the Asia Pacific and Middle East & Africa
- Carbon & low alloy steel led the market with a volume share of 47.8% in 2019 owing to significant consumption of ferro silicomanganese for carbon steel manufacturing in APAC
- Ferrochrome is predicted to witness significant growth from 2020 to 2027 as the stainless steel industry is poised to witness considerable growth