Ferroalloys Market (Type - Bulk Alloys (Ferrosilicon, Ferromanganese, and Ferrochromium) and Noble Alloys (Ferromolybdenum, Ferronickel, Ferrotungsten, Ferrovanadium, and Ferrotitanium); Application - Steel, Superalloys and Alloys, Wire Production, and Welding Electrodes) - Global Industry, Size, Share, Growth, Trends, and Forecast 2017 - 2025
Press Release :
Global Ferroalloys Market: Snapshot
Owing to the lack of a viable alternative that can meet the diverse applications, the future of the global ferroalloys market is healthy, expanding at an estimated CAGR of 5.9% during the forecast period of 2017 to 2025. The prosperity of the building and construction industry in a number of emerging economies is another key driver of the global ferroalloys market, wherein the development of lightweight and high strength steel grades is expected to open new opportunities. On the other hand, stringent governmental regulations pertaining to the environment and high operational costs are two glaring restraints over the global ferroalloys market. The market for ferroalloys, worldwide, is projected to reach a valuation of US$188.7 bn by the end of 2025, significantly up from its evaluated worth of US$112.8 bn in 2016.
Bulk Ferroalloys Emerge as Major Product Type Segment
Based on type, the global ferroalloys market has been segmented into two major categories, viz. bulk ferroalloys and noble ferroalloys. Bulk ferroalloys is further sub-segmented into ferrosilicon, ferromanganese, ferrochromium, ferro-silico-manganese, and ferro-silico-chromium. Manganese plays an essential part in the production of most varieties of steels and it is also one of the most important element in the production of cast iron. Most of the noble ferroalloys are made from rare earth minerals and are expensive to produce as compared to bulk ferroalloys. Most of the noble alloys are made from adding chromium, tungsten, nickel, boron, vanadium, niobium, titanium, cobalt, copper, molybdenum, phosphorus, and zirconium. These rare earth metals helps in contributing special properties and character to the various alloy steels and cast irons.
Steel Production Identified as Primary Application
The production of stainless steel and steel production are two primary applications of ferroalloys, whereas wire production, welding electrodes and superalloys and alloys are other application categories. Most of the bulk ferro alloys and noble alloys are used in enhancing the properties of steel according to different end users. Nearly 80% of the all ferroalloys are utilized for the production bulk ferroalloys and used in the production of the steel because of the low prices of the bulk ferroalloys and high production around the major producing regions. Noble alloys are produced from rare earth elements and also uses expensive energy consuming industrial processes which increases their production cost. Noble ferroalloys are expensive as compared to bulk ferroalloys. Consumption of noble ferroalloys is considerably less than bulk ferroalloys but revenue generated by noble ferroalloys is significantly more.
Asia Pacific to offer Lucrative Prospects for Growth
In 2017, Asia Pacific accounted for 79.5% of the overall demand in the global ferroalloys market, and is expected to exhibit the best CAGR among all regions throughout the forecast period. Europe was the second most profitable region in 2017, but the demand is expected to decrease in the near future, owing to slowing economy and global recession in the region. Recovering economy in North America, economic growth in Asia Pacific, and increased production of ferroalloys in the countries of Africa have driven the market for ferroalloys around the globe. Emerging technologies for the production of ferroalloys and increased consumption and exports from China, Japan, and India would drive the market for ferroalloys around the globe.
Some of the key companies in the global ferroalloys market are ArcelorMittal, Tata Steel, Sakura Ferroalloys, BAFA Bahrain, OM Holdings LTD, Pertama Ferroalloys, NikoPol Ferroalloy Plant, Gulf Ferroalloys Company, Brahm Group, Ferroalloy Corporation Limited, MORTEX Group, China Minmetals Corporation, Shanghai Shenjia Ferroalloys Co. Ltd., Vale S.A., Georgian American Alloys, SAIL, and OFZ S.A.
Rapid Industrialization and Booming Construction Sector to Attract Profitable Opportunities for the Ferroalloys Market
The demand for steel has increased considerably over the years. The rising popularity of steel across various applications will prove to be a prominent growth factor for the ferroalloys market across the assessment period of 2017-2025. The booming construction industry and the escalating influence of steel across numerous industries will serve as vital growth contributors for the ferroalloys market.
- Ferroalloy is the alloy of one or more alloying elements with iron. It is used significantly during the production of steel. These alloys add to the characteristics of steel. They enhance hardness, make steel corrosion-resistant, and add good tensile strength at high temperatures. All these aspects make them a prominent component in the steel industry. The growing use of steel across various applications is directly proportional to the heightening demand for ferroalloys.
- The booming steel industry across countries such as India and China will serve as a vital growth factor for the ferroalloys market. The rising demand for steel from these countries will bring tremendous growth opportunities for the ferroalloys market. The booming population and the rapid industrialization across various countries will also play a crucial role in increasing the growth rate of the ferroalloys market.
- The initiatives undertaken by various countries to boost the manufacturing sector will serve as a vital growth opportunity for the ferroalloys market. In addition, the initiatives across various countries to develop their industrial prospects will bring good growth opportunities.
- The COVID-19 pandemic has affected the growth projections of varied sectors and businesses. The ferroalloys market is no exception. The rising prevalence of virus transmission forced many countries to go into stringent lockdowns. These lockdowns attracted tremendous losses as manufacturing units and production units were shut.
- The decrease in demand and production has a negative effect on the growth of the ferroalloys market. Nevertheless, the easing of lockdown restrictions will help in the growth revival of the players in the ferroalloys market.
Global Ferroalloys Market: Overview
Ferroalloys are generally known as the alloys of iron metal in which one or more chemical additives are added into molten iron for steelmaking. Ferroalloys serves important function in the overall process of steelmaking by enhancing the general properties of iron metal. Steel making is one of the primary consumer of ferro alloys and consumes a significant part of the total ferroalloys produced around the globe. Ferroalloys can be divided into two major categories: bulk ferroalloys and noble ferroalloys. Bulk ferroalloys constitutes of ferrosilicon, ferromanganese, ferrochromium, ferro-silico-manganese, and ferro-silico-chromium.
Most of the noble ferroalloys are made from rare earth minerals and are expensive to produce as compared to bulk ferroalloys. Most of the noble alloys are made from adding chromium, tungsten, nickel, boron, vanadium, niobium, titanium, cobalt, copper, molybdenum, phosphorus, and zirconium. These rare earth metals helps in contributing special properties and character to the various alloy steels and cast irons.
Global Ferroalloys Market: Trends and Opportunities
Majority of the ferroalloys are consumed in stainless steel and steel production. Most of the bulk ferro alloys and noble alloys are used in enhancing the properties of steel according to different end users. Some of the major applications of ferro alloys are: steel production, production of superalloys, wire production, and production of welding electrodes. Around 80% of the ferroalloys production is consumed for the steel production and rest of the produced ferroalloys are consumed into other major applications. A significant share of the bulk ferroalloys are used in the production of the steel because of the low prices of the bulk ferroalloys and high production around the major producing regions.
Global Ferroalloys Market: Key Research Aspects
The report estimates and forecasts ferroalloys market on the global and regional levels. The study provides forecast between 2017 and 2025 based on Volume (Kilo Tons) & revenue (US$ Mn) with 2016 as the base year. The report comprises an exhaustive value chain analysis for each of the segments. It provides a comprehensive view of the market. Value chain analysis also offers detailed information about value addition at each stage. The study includes drivers and restraints for the ferroalloys market along with their impact on demand during the forecast period. The study also provides key market indicators affecting the growth of the market. The report analyzes opportunities in the ferroalloys market on the global and regional level. Drivers, restraints, and opportunities mentioned in the report are justified through quantitative and qualitative data. These have been verified through primary and secondary resources. Furthermore, the report analyzes substitute analysis of ferroalloys manufacturers and global average price trend analysis.
The report includes Porter’s Five Forces Model to determine the degree of competition in the ferroalloys market. The report comprises a qualitative write-up on market attractiveness analysis, wherein end-users and regions have been analyzed based on attractiveness for each region. Growth rate, market size, raw material availability, profit margin, impact strength, technology, competition, and other factors (such as environmental and legal) have been evaluated in order to derive the general attractiveness of the market.
Secondary research sources that were typically referred to include, but were not limited to, British Geological Survey (BGS), U.S. Geological Survey, International Historical Statistics, Indian Bureau of Mines, company websites, financial reports, annual reports, investor presentations, broker reports, and SEC filings. Other sources such as internal and external proprietary databases, statistical databases and market reports, news articles, national government documents, and webcasts specific to companies operating in the market have also been referred for the report.
In-depth interviews and discussions with a wide range of key opinion leaders and industry participants were conducted to compile this research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. This helped in validating and strengthening secondary research findings. Primary research further helped in developing the analysis team’s expertise and market understanding.
Global Ferroalloys Market: Segmentations
The study provides a comprehensive view of the ferroalloys market by dividing it into ferroalloys type, application, and geography segments. The ferroalloys type have been segmented into Bulk Alloys and Noble Alloys. The Bulk Alloys are further sub segmented into ferrosilicon, ferromanganese, ferrochromium, and others. Noble ferroalloys are sub segmented into ferromolybdenum, ferronickel, ferrotungsten, ferrovanadium, ferrotitanium, and others. The ferroalloys application have been segmented into steel, superalloys & alloys, wire production, welding electrodes, and others. These segments have been analyzed based on historic, present, and future trends. Regional segmentation includes the current and forecast consumption of ferroalloys manufacturers in North America, Latin America, Europe, Asia Pacific, and Middle East & Africa (MEA). Market segmentation includes demand for consumption in all the regions individually.
Global Ferroalloys Market: Competitive Landscape
The report covers detailed competitive outlook that includes market share and profiles of key players operating in the global market. Key players profiled in the report include AreArcelor Mittal, O.F.Z A.S., Tata Steel, Vale S.A., Pertama Ferroalloys Sdn. Bhd, Sakura Ferroalloys Sdn Bhd, China Minmetal Ltd., and Ferroalloy Corporation Ltd. Company profiles include attributes such as company overview, number of employees, brand overview, key competitors, business overview, business strategies, recent/key developments, acquisitions, and financial overview (wherever applicable).
The global ferroalloys market has been segmented as follows: