A new Transparency Market Research report – ‘Global Ferro Alloy Market – Industry Analysis, Size, Share, Growth, Trends and Forecast 2020’ states that the global ferro alloy market was valued at USD 37.2 billion in 2013 and is expected to reach USD 53.5 billion by 2020, expanding at 5.4% CAGR between 2014 and 2020.
As per the report, the expansion in the global steel industry is a key growth driver for the market for ferro alloy. In addition, the rising construction industry within Brazil, Russia, India, China, and South Africa (BRICS) will also stimulate the development of the market. Furthermore, the advancement of high strength and light weight steel grades will bring in new growth opportunities in the ferro alloy market. However, the strict environmental regulations enforced by the governments of various nations and the soaring operational costs associated with ferro alloys may impede the development of the market.
Ferro Alloy Market – Product Segment Analysis
O Ferro chrome
O Ferro manganese
O Ferro silicon
O Others (ferro tungsten, ferro nickel, ferro boron etc)
On the basis of products, the report segments the ferro alloy market into ferro chrome, ferro silicon, ferro manganese, and others including ferro nickel, ferro tungsten, and ferro boron. Amongst these, in 2013, ferro manganese led the market with a share of more than 37%. This is owing to the fact that ferro manganese is majorly utilized in foundry activities and steel making and is among the cheapest alloys utilized globally. By volume, the market for ferro manganese is predicted to expand at a 4.5% CAGR from 2014 to 2020. On the other hand, the market for ferro chrome is also rising exponentially owing to its growing utilization in stainless steel manufacturing. In addition, the increasing demand for anti-corrosive steel from the automotive industry is also augmenting the growth of the ferro chrome market.
Ferro Alloy Market – Regional Analysis
O North America
O Rest of Asia Pacific
O Rest of the World
Geographically, the market is segmented into China, Europe, North America, Rest of Asia Pacific and Rest of the World (RoW). Among these, China led the market in 2013 owing to the presence of a number of steel manufacturers within this country. By volume, China constituted a share of 46.6% in the market for ferro alloy in the same year. Europe trailed China and held the second-largest share in the market owing to the development of the automotive industry in this region.
Ferro alloy refers to a number of alloys of iron having a high percentage of one or more elements including aluminum, silicon, and manganese. Ferro alloy is made by using the carbothermic reaction process and is primarily utilized in the production of other alloys and steel including carbon steel, alloy steel, and stainless steel. The stainless steel industry is the top application segment of the market for ferro alloys. Ferro alloys are majorly of two main types: Bulk ferro alloys and other ferro alloys. Bulk ferro alloys include ferro chrome, ferro silicon and ferro manganese. On the other hand, other ferro alloys include ferro uranium, ferro titanium, ferro cerium, ferro vanadium, and ferro molybdenum.
Rest of Asia Pacific is predicted to be one of the most promising ferro alloy markets due to the expansion of the steel industry here, particularly within Japan and India. On the other hand, Rest of the World and North America are poised to register a slow growth rate on the basis of demand for ferro alloys during the forecast horizon.
Ferro Alloys Corporation Limited (FACOR), Georgian American Alloys, Nikopol Ferroalloy Plant, S.C. Feral S.R.L., China Minmetals Corporation, Sinosteel Jilin Ferroalloy Corporation Limited, and OM Holdings Ltd, among others, are the chief players dominant in the market, as per this study.
Source: Steel 360 Magazine June’16 Issue