Global ferrosilicon market size was estimated at around US$10.2 Bn in 2021, however the market is likely to continue observing gradual growth in the long run.
Steel and Cast Iron Sectors Drive Sustained Demand in Ferrosilicon Market
Ferrosilicon is used in the steel industry as a deoxidizer to stop carbon loss during manufacturing. Rising steel industry investment is therefore predicted to boost the market growth. Throughout the projected period, it is anticipated that increased ferrosilicon demand from the steel and cast iron sectors will fuel the expansion of ferrosilicon market. For instance, in Tangshan, Hebei, China, partially controlled by HBIS Group, POSCO started work on a new galvanized steel facility in January 2022. The projected is the 900 kilotons annual production capacity of the US$600 Mn factories, which will provide galvanized steel sheets to the automotive industry. Cast iron pipes are also commonly utilized in plumbing applications due to their long lifespan and strong compressive strength. Companies that make cast iron pipes are increasing their capacity, driving up demand for ferrosilicon. For instance, the cast iron pipe manufacturer American SpiralWeld Pipe Company stated in December 2021 that it would invest US$40 Mn to increase its operations in Richland County, USA. Such initiatives promote the steel and related products, which will help the market expand throughout the projection period.
The presence of numerous companies dispersed throughout numerous locations makes the market competitive. Market suppliers engage in acquisition-related operations to maintain and grow their presence. For instance, Elkem ASA took full ownership of the Salten energy recovery plant in February 2022 when it purchased the remaining 50% of Kvitebjrn Energi's stake in the facility. This acquisition seeks to make it possible to produce environmentally benign ferrosilicon grade. Other factors, including quick urbanization, and industrialization, soaring sales of luxury cars, rising building activity, and rising consumer electronics demand, contribute to the bright outlook of ferrosilicon market.
Ferrosilicon Market: COVID-19 Impact
Almost every industry in the world has suffered difficulties due to the epidemic. This is because various precautionary lockdowns and other restrictions imposed by regulatory bodies worldwide have seriously interrupted each company's manufacturing and supply chain activities. The market for ferrosilicon globally is not an exception. Additionally, because this pandemic has badly impacted most people's finances, individuals are now more concerned with reducing non-essential spending, which has diminished consumer demand. In addition, the market's growth slowed down due to a lack of demand from the building sector. With the restrictions imposed due to the pandemic, construction activities were temporarily shut down. This scarcity of demand for ferrosilicon in new and redevelopment construction activities decreased demand for the product. These variables are anticipated to impact the forecast period's global ferrosilicon market's revenue trajectory. However, the global ferrosilicon industry is projected to recover as regional regulatory authorities start to loosen these imposed limits.
Increased Demand in Steel Industries Will Drive Ferrosilicon Market Growth
Numerous industries, including the automotive, building, and manufacturing sectors, have a considerable need for steel. When ferrosilicon is added, steel gains improved mechanical, chemical, and physical properties. Additionally, it raises the standard of steel and steel-based castings. Products made of ferrosilicon are essential raw materials for the metallurgical and steel industries. Crude steel production worldwide grew from 1,880 million metric tonnes in 2020 to 1,951 million metric tonnes in 2021. In the upcoming years, the market will be driven by the steady rise in steel output. Ferrosilicon, and silicon are present in high concentrations in electrical steel, also known as stainless steel, which improves electrical qualities, including resistivity. Demand for ferrosilicon is anticipated to increase along with the demand for electrical steel used in manufacturing motors, transformers, and other power-generating equipment. It was predicted that the world would produce slightly less than 50.9 million metric tonnes of stainless steel in 2020. With the current pandemic, this was a drop of almost 1.3 million metric tonnes from the production volume in 2019. With less regulation, the market is likely to bounce back, which will fuel the expansion of ferrosilicon market further.
Demand from Construction Industry Keeps Ferrosilicon Market Afloat to a Certain Extent
The next biggest consumer of steel is anticipated to be the auto industry. The projection period will see expansion in the global ferrosilicon market as a result of solid growth momentum in the infrastructure programs for the industry, such as railroads and buildings. The auto industry is constantly working to create lightweight steel, which would help to improve overall fuel efficiency. In 2021, around 66.7 million cars were sold globally, up from 63.8 million in 2020. Roughly 80 million, or 7%, of the 1.45 billion total cars currently on the road worldwide were made in 2021. Thus with the aforementioned factor, it is anticipated that demand for ferrosilicon would develop.
Growing Presence of Strong Potential Alternatives Hamper Ferrosilicon Market Growth
Ferrosilicon can be replaced by high carbon silicon. Since high carbon silicon is less expensive than ferrosilicon, there will be a minor reduction in content compared to Ferro silicon, but the lower range can replace ferrosilicon use. High carbon silicon is a superior and suitable alternative with this price advantage. Deoxidation and silicon are characteristics of both ferrosilicon and high carbon silicon. Therefore, it may be substituted in various production processes. Ferrosilicon is frequently utilized for deoxidation during the steel-making process. Deoxidation is also possible with high carbon silicon. High carbon silicon is less expensive than ferrosilicon. As a result, several steel producers started to buy high-carbon silicon as a deoxidizer.
Inoculants to Dominate Ferrosilicon Market with Increased Usage in Cookware Sector
Over the projection period, the inoculants segment is predicted to increase at the greatest rate in terms of revenue. In the cast iron business, ferrosilicon is utilized as an inoculant, and it is predicted that rising demand for cast iron cookware would propel ferrosilicon market growth. For instance, The Indus Valley, a direct-to-consumer manufacturer of cast iron cookware, received USD 1.1 million from Rukam Capital, DSG Consumer Partners, and The Chennai Angels in October 2021. The money will be used to increase manufacturing and supply toxic-free cookware items. Additionally, ferrosilicon is utilized in the Pidgeon process to refine high-purity magnesium. The production of magnesium is being driven by an increase in demand from various industries, which is good for segment expansion.
Adoption in Rail Infrastructure to Make Cast Iron the Fastest Growing Segment in Ferrosilicon Market
Over the anticipated period, cast iron is anticipated to experience the fastest revenue growth. Cast iron is less expensive, simpler to melt, and has better casting properties than steel. Ferrosilicon is used as an inoculant in the cast iron industry to prevent the creation of iron carbide that is brought on by the quick cooling of castings' thin portions. Over the projected period, increased investment in cast iron is anticipated to increase product demand. Market expansion is anticipated to be fueled by favorable government policies toward the industrial industry and investments in rail infrastructure. Casting demand is increasing, which has increased rivalry in the nation and forced market participants to act like capacity expansions and mergers & acquisitions. For instance, Victaulic purchased Waupaca Foundry, Inc.'s ductile iron foundry in February 2021 to boost its production capacity by 70% in the United States. Two foundry molding lines at the facility should enable the company to produce on a much greater scale.
Rapid Infrastructural Developments Uphold Asia Pacific’s Top Position in Ferrosilicon Market
In the forecast period, Asia Pacific will dominate the ferrosilicon market. As a result of increased steel production and ongoing investments in the automotive sector, the market for ferrosilicon is expanding due to the enormous potential for infrastructure development. According to the World Steel Association, China, India, and Japan will generate the most crude steel worldwide in 2021. India reported a 4.7 percent increase in output from 2020 to 2021 whereas China and Japan recorded declines. Significant investments are being made in the region's various countries to increase their steel production capacity, which is anticipated to support market expansion throughout the projection period. The region that produces the most electronic components is Asia-Pacific. The demand for ferrosilicon in recent years has surged due to the use of semiconductors in nearly every electronic device.
The ferrosilicon market in North America is predicted to expand significantly in terms of revenue during the forecast period. Over the projected period, market growth is anticipated to be fueled by the EV industry's expansion and higher construction spending. Between 2020 and 2021, EV sales in North America increased by 96.0 percent, reaching 735,000 units. In response to surging sales, producers are increasing their EV output. Since EV motors need ferrosilicon grade-electric steel to be produced, rising EV demand is anticipated to fuel market growth. The region's nations are investing in renewable energy, which is anticipated to increase product demand. For instance, the Canadian government declared in June 2021 that it would update its infrastructure and invest USD 964 million in renewable energy.
Global Ferrosilicon Market: Competitive Landscape
For instance, in November 2021, BMML, a Bhutanese ferrosilicon producer, suggested to the country's administration the building of a ferrosilicon facility near Chengmari. The project's estimated value exceeds US$11.96 Mn. For instance, in January 2021, JSC TNC Kazchrome's Aksu ferroalloy mill, owned by Eurasian Resources Firm, a prominent diversified natural resources firm, attained a lifetime output milestone of 35 Mt in ferroalloy smelting. More than 60% of Kazakhstan's total ferroalloy production is currently produced by Kazchrome, which creates alloys containing chrome, silicon, and manganese.
A few of the players in the ferrosilicon market include Eurasian Resources Group, Elkem ASA, Fengerda Group, Ferroglobe, IMFA, Finnfjord AS, Russian Ferro-Alloys Inc., OM Holdings Ltd., VBC Ferro Alloys Limited, and Sinogu China.
Global Ferrosilicon Market is Segmented as Below:
Key Elements Included In The Study: Global Ferrosilicon Market
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