Ferroalloys Market Size, Share & Trends Report

Ferroalloys Market Size, Share & Trends Analysis Report By Product (FeCr, FeSiMn), By Application (Carbon & Low Alloy Steel, Cast Iron) By Region, (Asia Pacific, Europe, North America), And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-836-7
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 104

Report Overview

The global ferroalloys market size was estimated at USD 44.9 billion in 2019 and is expected to grow a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. The increasing steel production around the globe is the prominent factor driving market growth. Ferroalloys impart special characteristics to steel, such as improved hardness, resistance to corrosion, higher abrasion resistance, enhanced tensile strength at extreme temperatures, and significant creep strength. Therefore they represent significant raw materials to the iron and steel industry. China emerged as the leading player in the global market in 2019. China produced approximately 53% of the global crude steel in 2019, according to the World Steel Association. As a result, there is a massive demand for ferroalloys in China. The emergence of the COVID-19 pandemic is likely to significantly affect the steel output in China, which, in turn, is expected to hamper the ferroalloys market in 2020. However, the quick economic recovery of the country since March 2020 is expected to soften the impact to some extent.

China ferroalloys market size

By the end of April 2020, nearly all the steel-using end-use industries in China were reopened for production. However, the manufacturing firms were yet to operate at full capacity owing to weak domestic demand, as well as a sharp collapse in the exports. The second half of 2020 in China is likely to show more visible signs in the recovery of steel demand owing to the investments in infrastructure development, driven by several planned initiatives by the regional government. As a result, the demand for ferroalloys in China is likely to recover from June 2020.

Product Insights

Ferrochrome (FeCr) led the market and accounted for more than a 35% share of the global revenue in 2019 and will retain the leading position throughout the forecast years. The product is a primary raw material for stainless steel manufacturing, as it imparts aesthetic appearance and corrosion resistance to it. However, in terms of volume, Ferro Silicomanganese (FeSiMn) was the dominant segment in 2019. The segment is also estimated to record the fastest CAGR from 2020 to 2027, in terms of volume as well as revenue.

The product acts as deoxidizing and desulfurizing agents in steelmaking to increase its hardenability. The rising metal production combined with increased consumption of FeSiMn per ton of metal is predicted to drive the segment growth further. Ferrosilicon is added to steel to improve oxidation, temperature resistance, hardenability and to promote solid-solution strengthening. Heat-treatable, ultrahigh-strength, electrical, and automotive engine steels were the primary applications of ferrosilicon.

Application Insights

The carbon & low alloy segment led the market and accounted for more than 45.0% share of the global revenue in 2019. The segment will expand further at a steady CAGR over the forecast period retaining its dominant position. There is a significant demand for carbon steel from the global construction industry. Rapid urbanization leading to increasing infrastructure investments, especially in the developing economies, is likely to contribute to the segment growth over the coming years.

Cast iron is poised to witness the fastest CAGR of 6.0%, in terms of revenue, from 2020 to 2027. The ferroalloys that are extensively used for the production of cast iron include ferrosilicon and ferromanganese. Increasing demand for iron casting from the construction, automotive, and energy sectors is likely to fuel the segment growth in the coming years.

Global ferroalloys market share

Stainless steel is predicted to witness considerable growth during the forecast period. As per the ISSF, the global stainless steel production was 35,917 kilotons in 2012 and reached 52,218 kilotons in 2019, with a CAGR of 5.5% from 2013 to 2019. This growth played a major role in driving the demand for ferrochrome over the respective period.

Regional Insights

Asia Pacific led the market and accounted for more than 75.0% share of the global volume in 2019. This dominance can be credited to the large steel production in the region. In 2019, Asia Pacific produced 72% and 73% of global carbon and stainless steel respectively. The relatively quicker recovery of China following the downturn due to the COVID-19 pandemic is likely to benefit the ferroalloys demand.

Southeast Asia is yet another attractive market. ASEAN-5, which comprises Indonesia, Malaysia, the Philippines, Vietnam, and Thailand, are also likely to witness attractive growth over the coming years. As per the International Monetary Fund (IMF), ASEAN-5 countries have a huge economic growth potential, which is likely to drive the product demand over the coming years.

Although the market size was substantially smaller when compared to the Asia Pacific, owing to the relatively smaller steel industry, Europe represented the second-largest market in 2019. The steel production in Europe has witnessed sluggish growth since the past few years due to slower economic growth and political uncertainties associated with Brexit. The future growth is likely to be more severely affected amidst the slowdown caused by the COVID-19 pandemic with Europe expected to witness the largest GDP contraction in 2020.

North America was the third-largest market in 2019. The region is expected to witness a steady growth following the economic recovery in 2021 after witnessing a sharp decline in 2020. Increasing emphasis on domestic production and favorable prices are the crucial factors that are likely to contribute to the regional demand over the coming years.

Key Companies & Market Share Insights

The global market is highly fragmented with China and India being the leading producers of the product. The supply dynamics of ferroalloys are hugely dependent on the type of product. For instance, South Africa and China lead in ferrochrome production, while India along with China is at the forefront in terms of Ferro-silicomanganese production. The industry is leaning toward consolidation, with small businesses being acquired by large producers. For instance, the South African market has witnessed the acquisition of numerous companies including International Ferro Metals (IFM), ASA Metals, and Tata Steel KZN. The key issue with these companies was that they were not fully integrated vertically in the value chain. They also had higher operating costs due to no direct ownership. Some of the prominent players in the ferroalloys market include:

  • Jindal Group

  • Glencore

  • Samancore Chrome

  • Shanghai Shenjia Ferroalloys Co. Ltd

  • Ferro Alloys Corporation Limited.

  • S.C. Feral S.R.L

  • Tata Steel Limited - Ferro Alloys & Minerals Division

  • Arcelor Mittal

  • China Minmetals

  • SAIL

Ferroalloys Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 43.0 billion

Market volume in 2020

40,464.2 kilotons

Revenue forecast in 2027

USD 69.0 billion

Volume forecast in 2027

58,500.2 kilotons

Growth Rate

CAGR of 5.5% from 2020 to 2027 (Revenue-based)

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD million and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

The U.S.; Germany; France; The U.K.; China; India; Japan; Brazil

Key companies profiled

Ferro Alloys Corp. Ltd.; Shanghai Shenjia Ferroalloys Co. Ltd.; SAIL; Glencore; Jindal Group

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global ferroalloys market report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Ferrochrome

    • Ferromanganese

    • Ferro Silicomanganese

    • Ferrosilicon

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Carbon & Low Alloy Steel

    • Stainless Steel

    • Alloy Steel

    • Cast Iron

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

    • Europe

      • Germany

      • The U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

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