Ferroalloy Market has witnessed an immense surge in its valuation, primarily driven by the ever-expanding construction industry. Rapid urbanization and increasing construction activities particularly in the BRIC nations have fueled the growth of ferroalloy industry. The construction industry in these nations has generated revenue worth USD 3 trillion in 2015, and is estimated to flourish at a healthy growth rate of 10% over the period of 2016-2024.
Global ferroalloy industry will also observe a spur, due to increasing demand for steel in ship building and automotive industries. The global steel industry has evolved over the years in terms of both money and volume. In 2015, this industry produced over 1.5 billion tons of steel and is anticipated to cross 2.5 billion tons by 2024. This exponential statistic of steel industry has in turn benefited ferroalloy industry to spur.
Ferroalloy finds general application in the manufacturing of different grades of steel. These different grades of steel including stainless steel, carbon steel, etc., witness heavy demand from the automotive industry. The predominant use of steel in the automotive and construction industry has provided a significant impetus to global ferroalloy market trends. According to Global Market Insights, Inc., “Ferroalloy market is anticipated to exceed USD 65 billion by 2024 growing at a compound annual growth rate of more than 6% over 2016-2024.”
China Ferroalloy Market size, by application, 2013 - 2024 (USD Billion)
The emerging economies in Asia Pacific has observed rapid industrialization and surge in infrastructural development. Rising construction activities, shipbuilding, and automobile industries in India and China have provided a major boost to the demand of stainless steel and iron alloys, which in turn has fueled the regional growth of ferroalloy industry. Asia Pacific collected revenue worth USD 25 billion in 2015 from ferroalloy market and is expected to register a CAGR of 6% over the period of 2016-2024. Asia Pacific also has a presence of numerous steel plants and has abundant deposits of iron ore. This fact also has a positive impact on the surging demand of ferroalloy in the region. In consequence, many ferroalloy industry players are focusing on this region to draw maximum profit from its rich iron ore sediments.
The stainless-steel application segment of ferroalloy industry occupied a considerable market chunk and is most probable to showcase a healthy growth rate of 6% over the analysis period. Stainless steel is a prominent alloy which finds wide array of end-use in automobiles, underground and underwater pipelines, household products and utensils, food and beverage containers and architectural designs. Growing demand for steel in various applications has provided ferroalloy market with lucrative growth opportunities. Moreover, in 2015, stainless steel application segment occupied over three quarters of the total ferroalloy industry share.
The ferrochrome product segment of ferroalloy industry is most evidently used for providing stainless features to steel. This is done by varying the quantity of chromium in the alloy. High demand for stainless steel has pushed the growth of ferrochrome product segment which is likely to register a CAGR of 6% over the period of 2016-2024.
Apart from ferrochrome, ferroalloy market product segment comprises ferromanganese, ferrosilicon, and other alloys. The ferromanganese product market worth USD 15 billion in 2015, is set to record a growth rate of 6% between 2016-2024. The fast growth can be attributed to the product’s low cost and easy availability.
Ferrosilicon product segment of ferroalloy market generated over USD 7 billion in 2015. Ferrosilicon is widely used for deoxidizing steel, modifying the steel properties, and also in inoculating iron to accelerate graphitization. However, threats associated with amorphous silica content is now predicted to show a lethargic growth rate over the forecast.
Carbon steel is another prominent application segment of ferroalloy industry, having collected revenue over USD 900 million in 2015. Carbon steel has a superior structural value and finds wide application in manufacturing of steel wire and springs and as well in construction of buildings.
Europe ferroalloy market is anticipated to grow at a rate of 5% every year from 2016 to 2024. Europe has a strong base of companies in UK, Germany, and France. The demand form ferroalloy market is projected to stimulate, owing to the growing automobile manufacturing companies.
Global ferroalloy industry is highly competitive and fragmented in nature. The market players are constantly into upgrading their strategies and focusing on activities which will help them in their business expansion. The industry has a presence of many large, medium, and small scale manufacturing companies which keeps the competition high. In 2015, the top players of ferroalloy market catered to near about a tenth of the overall industry. The top players accumulating major industry share include Eurasian Natural Resources Corporation, Ferro Alloys Corporation, ArcelorMittal, Jindal Group, Tata Steel, Sinosteel Jilin Ferroalloy Co., LEMETCO GmbH, MidUral Group, and China Minmetals.