Silicon Alloys Market - Snapshot
An alloy is a mixture of metals produced by amalgamating two or more metallic or non-metallic elements together in a desired quantity in order to grant certain desirable properties or characteristics to the base metal. Silicon alloys have silicon as a major element present in them. Ferrosilicon is a silicon alloy with silicon as a major element in the mixture in general. Silicon alloy or ferrosilicon is produced from sand or silica by reducing it with iron and coke at extremely high temperatures in submerged arc electric furnaces. Usage of excess silica above the stoichiometric requirement prevents the formation of silicon carbide during ferrosilicon production. Ferrosilicon is used to deoxidize steel and some of the other ferrous alloys and is also used as a reducing agent for some metals. Ferrosilicon consists of about 2% of aluminum and calcium in its composition. The use of ferrosilicon can improve the corrosion resistance and high temperature heat resistance properties of new product when used in the production of ferrous alloys.
Increase in Production of Automobiles and Rise in Automotive Sales to Drive Market
The automotive industry is one of the major consumers of cast iron and steel products, as several components such as engine blocks, cylinders, etc. are made from these materials and are an essential part of any automobile. Silicon alloys are mainly consumed in the manufacture of steel and cast iron. A rise in the sales of automobiles, especially in developing countries such as China and India, due to an increase in purchasing power and disposable income is likely to drive the silicon alloys market. Easy availability of financing options is also resulting in an increase in demand for automobiles in emerging economies. A rise in the sales of automobiles is resulting in a rise in production in order to meet growing demand, which is anticipated to boost demand for cast iron and steel products. Therefore, expansion of the automotive industry is estimated to result in a rise in demand for silicon alloys for manufacturing steel and cast iron. This is projected to propel the market in the near future.
Moreover, rapid industrialization and development in infrastructure, especially in developing and underdeveloped economies, is also likely to drive the silicon alloys market during the forecast period. Rapid industrialization is estimated to result in an increase in demand for cast iron and steel products, especially in industries such as industrial machinery, automotive, energy, and manufacturing. This is projected to augment demand for silicon alloys or ferrosilicon for cast iron and steel production. Increase in infrastructure development is also anticipated to increase demand for iron and steel products and propel the silicon alloys market in the next few years.
Dependence on Power and Reductants Expected to Restrain the Market
The production of silicon alloys is an energy-intensive process. Electricity comprises around 50% to 70% of the total production cost of ferrosilicon or silicon alloys. Any increase in electricity prices can adversely affect the production cost of silicon alloys, which is a major restraint for the market. In developing countries such as China and India, where power cuts and power shortages are still a major problem, high energy requirement for silicon alloys production is expected to be a major restraint for the market. Excessive usage of reducing agents can also impact the product quality and can generate undesirable by-products, resulting in environmental issues for producers.
Gap in Actual and Required Infrastructure Spending to Create Lucrative Opportunities to Silicon Alloys Market
The required investment in infrastructure development is far greater than actual investment. Currently, the global infrastructure spending stands at around US$ 2.5 Trn per year. However, this spending is inadequate to meet the growing infrastructure needs across the globe, especially in underdeveloped regions. Even infrastructure spending in developed nations is not sufficient to meet the overall requirement of residents. This gap in actual and required investments results in lower economic growth and denies people basic and essential services. Therefore, a rise in investment in infrastructure is expected to offer expansion opportunities to the silicon alloys market.
Asia Pacific Constituted 65% Share of Global Market in 2018
Based on region, the global silicon alloys market has been segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific dominated the global silicon alloys market in 2018. This can be primarily ascribed to China, which is a prominent producer and consumer of silicon alloys across the globe. The market in the region is anticipated to expand at a rapid pace during the forecast period.
China-based Players Dominate Global Silicon Alloys Market
Key players operating in the global silicon alloys market are RFA International, OM Holdings Ltd., Dragon Northwest Ferroalloy Co.,Ltd., Kuwait United Chemalloys Manufacturing, DMS Powders (Pty) Ltd, Ferroglobe, SKP Group, ArcelorMittal, Jindal Stainless Ltd, Metal & Alloys Corporation, Elkem ASA, Georgian American Alloys, Lalwani Ferro Alloys Ltd., Tata Steel Ltd, Pioneer Carbide Pvt. Limited, and Steelmin Limited..
Silicon Alloys Market - Overview
Silicon alloys have significant amount of silicon present in them. They have silicon as a major element in them. Silicon alloys are produced from sand or silica in submerged electric arc furnace along with coke and iron at very high temperatures. Silicon alloys are widely used in the manufacturing of steel and cast iron. Addition of these alloys in materials can improve the corrosion resistance and high temperature heat resistance properties of the material.
This report analyzes and forecasts the silicon alloys market at global and regional levels. The market has been forecast based on volume (kilo tons) and value (US$ Mn) from 2019 to 2027, considering 2018 as the base year. The study includes drivers and restraints of the global silicon alloys market. It covers the anticipated impact of these drivers and restraints on the demand for silicon alloys during the forecast period. The report highlights opportunities for silicon alloys market at the global and regional levels.
The report includes detailed value chain analysis, which provide a comprehensive view of the global silicon alloys market. Porter’s Five Forces model for the silicon alloys market has also been included to help understand the competition landscape of the market. The study encompasses market attractiveness analysis, wherein type and application segments have been benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global silicon alloys market by segmenting it in terms of type and application. In terms of type, the market has been classified into ferrosilicon which is further sub-segmented into deoxidizers, inoculants, and others. In terms of application, the market has been divided into carbon steel & other alloy steel, stainless steel, electrical steel, cast iron, and others. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for silicon alloys in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report provides size (in terms of volume and value) of the global silicon alloys market for the base year 2018 and the forecast between 2019 and 2027. Market volume has been defined in kilo tons, while the market value has been defined in US$ Mn. Market numbers have been estimated based on type and application segments of the silicon alloys market. Market size of the global, regional, and country-level market has been provided.
The report comprises profiles of major companies operating in the global silicon alloys market. Key players operating in the global silicon alloys market include RFA International, OM Holdings Ltd., Dragon Northwest Ferroalloy Co.,Ltd., Kuwait United Chemalloys Manufacturing, DMS Powders (Pty) Ltd, Ferroglobe, SKP Group, ArcelorMittal, Jindal Stainless Ltd, Metal & Alloys Corporation, Elkem ASA, Georgian American Alloys, Lalwani Ferro Alloys Ltd., Tata Steel Ltd, Pioneer Carbide Pvt. Limited, and Steelmin Limited. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, regional presence, and recent developments.
The global silicon alloys market has been segmented as follows:
Global Silicon Alloys Market, by Type
- Others (including Nodulizers)
Global Silicon Alloys Market, by Application
- Carbon Steel & Other Alloy Steel
- Stainless Steel
- Electrical Steel
- Cast Iron
- Others (including Magnesium, Semiconductor-based Silicon, and Silicon Copper)
Global Silicon Alloys Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of Middle East & Africa
- Extensive analysis of the global silicon alloys market trends and shares from 2018 to 2029 to identify growth opportunities and analyze key market developments
- The deoxidizer sub-segment accounts for a prominent share of the market due to high demand from the steel manufacturing industry
- The stainless steel segment is anticipated to expand at a significant rate during the forecast period
- The market in Asia Pacific is estimated to expand at a significant pace during the forecast period
- The cost curve for silicon alloy production with a description of major cost components
- List of key factors used to build a roadmap of upcoming opportunities for the silicon alloys market at global, regional, and country levels
- Insight on growth opportunities for various stakeholders in the value chain of the market and a detailed competition landscape of key players operating in the market to help understand the market competition level