Global Ferroalloy Market: Snapshot
The global market for ferroalloy, which basically are the alloys of iron with different proportions of aluminum, manganese, silicon and other elements, is driven by the growing steel demand in various end-use industries and the prosperity of the building and construction industry, especially in the BRICS nations. However, high operational costs and strict environmental regulations are somewhat hindering the market for ferroalloy from achieving its true potential.
As per the findings of the report, the global ferroalloy market will grow at a healthy CAGR of 5.40% during the forecast period of 2014 to 2020, reaching a valuation of US$53.5 bn, significantly up from its evaluated worth of US$37.2 bn in 2013. The development of lightweight and high strength steel grades is expected to open new avenues for the stakeholders connected to the global market for ferroalloy.
Ferromanganese Most Profitable Product Segment
Product-wise, the global ferroalloy market has been segmented into ferromanganese, ferrochrome, ferrosilicon, and others such as ferroboron, ferrotungsten, and ferronickel. Among these, ferromanganese segment accounted for 37% of the demand in 2013, gaining traction because of its cost efficiency, which makes it highly useful for foundry industries, wherein it is used to enhance the physical properties. This segment is projected to expand at a CAGR of 4.5% during the forecast period of 2014 to 2020. Easy availability of this product is another factor augmenting the demand for ferromanganese alloys. On the other hand, ferrochrome alloys are also expected to gain incremented demand in the near future, as it used to impart stainless feature on steel, making them rust-proof, which are highly useful for several sectors such as household goods, automotive, medical, and chemical sectors.
Asia Pacific Serves Maximum Demand
Emerging economies of China and India, wherein industrial and construction sector is currently flourishing, make Asia Pacific the most lucrative region in the global ferroalloy market. China alone accounted for 46.6% of the global demand for ferroalloy, owing to the presence of a large number of steel manufacturers in the country that are continuously striving to increase production capacity. In addition to that, the prosperity of automotive industry in Asia Pacific on the back of increasing disposable income among the urban population and rapidly growing construction sector is expected to sustain the region as highly profitable in the near future.
On the other hand, Europe is expected to remain the second most profitable region, driven by the large number of vendors of the automobile industry. Steel made with ferroalloy are used for the chassis of vehicles, which forms a bulk of it. These alloys are also used for underground and underwater pipelines, architectural designs, food and beverage containers, and accessories such as screws and bolts.
S.C. Feral S.R.L., Sinosteel Jilin Ferroalloy Corporation, Shanghai Shenjia, China Minmetals, and Eurasian Natural Resources Corporation PLC are some of the leading companies operating in the global ferroalloy market, which is highly fragmented in nature, owing to the presence of vast number of small, medium, and large scale manufacturing companies. Strategic acquisitions and technological partnerships are two key methods for the leading companies to gain ground over the competition. Some of the other prominent players identified in the global ferroalloy market are Tata Steel, ArcelorMittal, Ferro Alloys Corporation, Jindal Group, OM Holdings, Georgian American Alloys, Nikopol, LEMETCO GmbH, Sakura, and MidUral Group.
- Ferroalloy Market - Product Segment Analysis
- Others (Ferrotungsten, ferronickel, ferroboron, etc)
- Ferroalloy Market - Regional Analysis
- North America
- Rest of Asia Pacific
- Rest of the World