Ferrosilicon Market Analysis By Application (Deoxidizer, Inoculant), By End-use (Carbon & Other Alloy Steel, Stainless, Electric Steel), By Region (North America, Europe, APAC, Central & South America), And Segment Forecasts, 2018 - 2025

Industry Insights

The global ferrosilicon market size was estimated at 7,610.0 kilo tons in 2015. The increasing demand for ferrosilicon (FeSi) as a deoxidizer in the steel industry and as an inoculant in the casting industry is expected to drive the market over the forecast period.

The market for the product is expected to grow on account of the growing demand in key end-use industries. China and Russia, being the major producers of the alloy, are price and trend setters in the industry. The users of the product mostly belong to the steel industry, as a majority of the FeSi produced is consumed in the manufacturing of electric steel, silicon steel.

China ferrosilicon market volume, by application, 2014 - 2025 (Kilo Tons)

During China’s rapid urbanization and industrialization, the internal demand for steel increased significantly. However, with the boost of crude steel output, the country’s steel provisions satisfied internal demand and resulted into outstrip consumption. As product demand is primarily dependent upon the steel manufacturing sector, the product also witnessed the same market trend.

Silicon slag, a by-product obtained during silicon production, is mostly used in common casting of steel slag and recycling of pig iron. In addition, it aids in improving the furnace temperature significantly, increasing the liquidity, and discharge iron slag efficiently. Silicon slag contains around 45%-95% of silicon, and hence, is used as a substitute for ferrosilicon.

Application Insights

Increasing product demand for deoxidizing various ferrous alloys, in steel manufacturing, and in the processing industry is expected to drive the overall industry growth over the forecast period. High demand for the alloy as a source for silicon in steel manufacturing process has been a key driver for the industry growth.

The demand for ferrosilicon as an inoculant in the cast iron industry is expected to have a positive impact on the industry growth. Inoculants have various advantages, such as they offer less fading tendency, reduced formation of dross, and they are less prone to shrinkage formation. As a result, they have a high demand for manufacturing both ductile and gray iron.

The deoxidizer application segment is expected to grow at a CAGR of 1.3% from 2016 to 2025, in terms of revenue. Increasing demand for the alloy as a source of silicon to reduce metals from their oxides is expected to drive the industry growth over the next nine years. Rising demand for the product as a deoxidizer in the carbon & other alloy steel production is expected to aid market growth.

Inoculants offer improved homogeneity of cast iron and eliminate the formation of carbides into thin parts or salient angles. The addition of inoculants in iron decreases the risk of gas formation, metal interface defects, dross formation tendency, and micro shrinkage. As a result, the demand for the product as inoculants is expected to witness significant growth.

End-use Insights

The steel industry is the largest end-use segment in the industry, owing to its high demand as a deoxidizer in the manufacturing of different types of steel. Carbon steel and other steels, including manganese, silicon, nickel, and chromium, accounted for over 45% of the overall steel market. As a result, the demand for the product in the steel industry is driven by carbon & other alloy steel.

Ferrosilicon is widely used for the graphitization process in the cast iron industry, which improves the homogeneity of the metal. In addition, utilization of the alloy eliminates the formation of carbides into salient angles and limits the metal interface defects. As a result, with the increasing production of various types of cast irons, the product demand is expected to witness substantial growth.

Global ferrosilicon market volume by end-use, 2015 (%)

Electric steel, also known as silicon electrical steel, uses higher shares of silicon and silicon alloys such as FeSi, which improves the electrical resistivity of the steel. Increasing demand for electric steel in electricity transmission & distribution and power generation is expected to drive demand for the product in the electric steel industry.

The product has a high demand in stainless steel manufacturing, as a heat blocker. The product is used as a deoxidizer in steel manufacturing process in order to eliminate gas holes, metal oxides, and porosity, which aids in enhancing the properties of stainless steel. As a result, the demand for the product is expected to growth significantly over the forecast period.

Regional Insights

The industry growth is primarily driven by the steel industry, which accounts for over 70% of the overall consumption of the alloy. Asia Pacific being the largest steel manufacturing region drives the global demand. Europe is the second-largest producer of crude steel; as a result, the demand for the product is high in the region.

Growing initiatives by respective state governments as well as the European Commission in reviving end-use markets for the steel industry, including automotive and construction, is expected to propel demand for steel, which in turn is expected to surge the demand for ferrosilicon over the forecast period.

Automotive and construction industries in the Asia Pacific, especially in countries such as India and China, are experiencing high growth. This is expected to drive the steel and other metal manufacturing industries. As FeSi improves the strength of the metal, the demand for the product is expected to witness significant growth in Asian countries.

The overall crude steel production in Africa was over 13 kilotons in 2015, out of which South Africa accounted for a major share, followed by Egypt, with volume production of 5.5 kilotons and 6.4 kilotons respectively. Rising demand for the alloy in steel deoxidization process is expected to have positive impacts on the industry growth over the forecast period.

Competitive Insights

The market is highly competitive with the presence of a number of multinational companies across the major economies. The companies operate in multiple locations with manufacturing facilities and sales offices located in the area of operation, coupled with third party distribution agencies augmenting the sales network. The major companies include China National BlueStar (Group) Co. Ltd., Elkem AS, FerroAtlantica Group S.A., and AMG.

The majority of the companies in the industry are vertically integrated into the production of quartzite, coal, and coke. This provides the companies with a much-improved product portfolio that accounts for an increase in the sales of the companies. In addition, companies such as Finnfjord have started producing enough electricity to sustain their manufacturing facilities.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global ferrosilicon market on the basis of application, end-use, and region:

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Deoxidizer

  • Inoculant

  • Others

• End-Use Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Carbon & other alloy steel

  • Stainless steel

  • Electric steel

  • Cast iron

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • Russia

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa