This study intends to unfurl the multiple facets of global chromium market and thereby examine how the short-term growth of the market will unfold during the stipulated time span.
Notable Consumption as a Preferred Raw Material Across Chemical, and Steelmaking Industries Upholds Chromium Market
Chromium plays a crucial role as an alloying component during stainless steel manufacturing, which remains the key factor driving global chromium market growth. To increase stainless steel's hardness, and boost resistance to oxidation, which prevents corrosion, chromium makes up about 18% of the overall composition. Chromium's anticorrosive qualities make it the best metal for electroplating electrical and electronic equipment, particularly to coat electro-galvanized steel, zinc, copper, and aluminum. The production, and shipments of electronic equipment reached around US$52.6 Bn in the fourth quarter of 2020, according to the Statistical Handbook of Japan 2021, and are anticipated to rise. The Lenovo Group, a well-known name in consumer electronics and media, also released its annual report for the fiscal year ending in March 2021, revealing that its overall revenue totalled US$60,742 Mn. One of the most important raw materials in the chemical industry is chromite, converted into chromium salts widely used in electroplating, printing and dyeing, tanning, catalysis, fuels, medications, and oxidants. Additionally, the introduction of supportive government initiatives and financing to support the automobile industry, notably in China and India, is anticipated to benefit the growth of chromium market.
However, the expansion of chromium market is being hampered by its carcinogenic qualities and price instability. Hexavalent (Cr VI) and trivalent forms of chromium, both of which are hazardous, are present in the environment (Cr III). In both acute and chronic exposure scenarios, Cr III is considered less hazardous than Cr VI. Humans exposed for an extended period to Cr VI experience significant respiratory tract effects. Common irritants brought on by its exposure include coughing, shortness of breath, wheezing, and neurological and gastrointestinal consequences. Yildirim Group acquired Albchrome Holding, an Albanian company specializing in chrome and ferrochromium, in January 2022. The major objective of this acquisition is to increase the company's share in chromium market to retain its existing level of success and strengthen its position in global chromium market.
Chromium Market: COVID-19 Impact
Studies reveal that the COVID-19 epidemic significantly reduced raw material production in 2020 due to a lack of operations worldwide. Since 2021, many nations worldwide have noticed a steady revival in the metallurgical business. To give metals corrosion resistance and a glossy finish, chromium is largely utilized in the metallurgy sector of the economy. For instance, the World Steel Association reports that Spain's yearly steel output volume increased by 27.7% from 2020 to 2021, reaching 14 million metric tonnes. Additionally, the Abu Dhabi-based company Emirates Steel revealed its ambitions to build a new steel manufacturing facility in the nation in September 2021. Once finished, the new facility will enable the business to produce more than 5 million tonnes of steel annually. Because chromium is essential for producing stainless steel due to its hardening and corrosion resistance features, a continual increase in steel production is predicted to boost the need for chromium. This suggests that the chromium market will gradually improve over the following years.
Growth in Demand for Electronic Goods Complements Chromium Market Growth
Chromium's anticorrosive qualities make it the best metal for electroplating electrical and electronic equipment, particularly to coat electro-galvanized steel, zinc, copper, and aluminum. The production and shipments of electronic equipment reached US$ 52.6 billion in the fourth quarter of 2020, according to the Statistical Handbook of Japan 2021, and are anticipated to rise. In addition, the Lenovo Group, a well-known name in media and consumer electronics, released its annual report for the fiscal year that ended in March 2021, which revealed that the company's total revenue in the fiscal year 2020/21 increased by 20% from the fiscal year 2019/20 to US$ 60,742 million. As a result, it is anticipated that as the production and demand for electronics products and equipment rise, so will the demand for chromium for electroplating such items. This will probably fuel the expansion of chromium market in the ensuing years.
Increased Consumption for Automotive Application Bolsters Chromium Market Growth
The European Automobile Manufacturers Association (ACEA) estimates that between January and June 2021, the EU's demand for new passenger cars climbed dramatically by 25.2%, reaching almost 5.4 million units. Similarly, a recent report by the International Netherlands Group (ING) claims that since the epidemic, there has been an increase in demand for the development and manufacture of electric vehicles. It claims that new electric car sales grew by 50% globally in 2021 and are forecast to rise by 8% globally in 2022. It goes on to say that sales of electric vehicles have grown by 14% in Europe, 9% in China, and 4% in the US. Since chromium is primarily used for electroplating and conversion coatings in the exterior and interior of vehicle parts like steering wheel trims, console trims, gear shifts, licence plate frames, bumpers, headlights, and other similar parts, it is expected that an increase in demand and production of the automobile will increase the demand for chromium. It is projected to accelerate the growth of chromium market in the following years.
Potential Health Risks Associated with Hexavalent Chromium Remains a Longstanding Challenge Facing Chromium Market
It is well-recognized that prolonged exposure to hexavalent chromium can have serious health consequences, such as occupational asthma, perforated eardrums, eye irritation or damage, respiratory irritation, liver damage, lung congestion, kidney damage, respiratory cancer, and skin irritation. Chromium ulcers, also referred to as skin ulcers caused by chromium contact with non-intact skin, are another possibility. Furthermore, continuous or protracted exposure to 0.045 nanograms of hexavalent chromium per cubic metre could raise the risk of cancer in employees, according to the California Office of Environmental Health Hazard Assessment (OEHHA). Therefore, these health risks linked to chromium consumption could restrain chromium market expansion.
Trivalent Chromium Will Remain Dominant in Chromium Market Through 2029 End
Due to its advantages over hexavalent chromium and growing demand for chrome plating, the trivalent chromium sector had a sizable proportion of the global chromium market in 2021. In contrast to hexavalent chromium, trivalent chromium plating, for example, is easier to apply to a variety of metals, has better adhesion to uneven surfaces and geometries, can be applied even at lower temperatures, and has a higher resistance to heat, chemicals, UV light, and temperature. Additionally, it extends the total product lifecycle of a commercial or industrial machine and enhances overall performance, durability, and equipment functionality.
Metallurgy Retains Lead in Chromium Market with Sustained Consumption by Metal Producers
In 2021, the metallurgical sector had the greatest market share for chromium, and it is anticipated to expand at the highest rate due to the rising need for chromium in the manufacturing of metals, including steel, aluminum, and other materials. Chromium is largely used in metallurgy to give metals a shiny sheen and resistance to corrosion. Due to its hardening and corrosion resistance capabilities, even at high temperatures, is essential in manufacturing stainless steel. Like chromium is used in steel production, aluminum is heat treated to control its structure and increase its toughness and endurance. Therefore, the demand for chromium is anticipated to rise as steel and aluminum production expands globally, driving the expansion of chromium market over the forecast period.
Asia Pacific Spearheads Chromium Market, Rampant Industrialization Plays a Crucial Role
The increased manufacturing of products related to stainless steel is predicted to cause the chromium market to expand significantly over the forecast year. Chromium is a crucial component in creating commercial-grade stainless steel and is typically used as an addition to harden steel and improve corrosion resistance. Due to the high demand from application industries, including automotive, aerospace, defense, electronics, and building & construction, stainless steel production is growing quickly. In 2021, up to 40% of the global chromium market was accounted for by Asia Pacific. Due to the growing need for chromium in the metallurgy industry, chromium consumption is especially high in this region.
For instance, the Japan Iron and Steel Federation reports that the country's crude steel production increased by 14.9% from 83.2 million tonnes in 2020 to 96.3 million tonnes in 2021. The demand for chromium is driven by increased uses, such as decorative plating from automobiles' finishing and plating industries. Chromium-plated automobile parts' key benefits are corrosion and wear resistance and the capacity to enhance the external appearance of the vehicle. Over the course of the projected period, these beneficial qualities are anticipated to fuel market expansion. But throughout the projection period, the rising environmental consciousness and the associated strict requirements for chromium plating may present a hurdle to the progress of chromium market.
Chromium Market: Competitive Landscape
Yildirim Group bought Albchrome Holding, an Albanian chrome and ferrochromium firm, in January 2022. This acquisition's primary goal is to support the company's continued growth and to fortify its position in the global marketplace. The UK-based Wall Colmonoy Limited debuted its new line of cast discs and powders containing cobalt-chromium for usage in the dental sector in May 2021. Due to their excellent strength, biocompatibility, and wear resistance, the new cobalt-chromium powders are considered perfect for dental implants, partial dentures, and prosthetics.
Few of the players in chromium market include Kermas Group Ltd., CVK Group, GLUF Mining Group LLC, Hernic Ferrochrome Ltd., Glencore PLC, Eurasian Natural Resource Corporation, Odisha Mining Corporation, and AI Tamman Indsil Ferro Chrome LLC.
Regional Classification of Global Chromium Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Chromium Market
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