Ferroalloys Market Size, Share and Trends 2024 to 2034

Ferroalloys Market Size and Forecast 2024 to 2034

The global ferroalloys market size is calculated at USD 54.65 billion in 2024 and is predicted to surpass around USD 122.54 billion by 2034, registering at a CAGR of 8.41% from 2024 to 2034. The increasing demand for steel and other metals with corrosion resistance properties by the various end-use applications is driving the growth of the ferroalloys market. 

Ferroalloys Market Key Takeaways

• Asia Pacific dominated the ferroalloys market and contributed the biggest market share of 62% in 2023.
• North America has anticipated significant growth during the forecast period.
• By product, the ferro silico manganese segment accounted for the highest market share of 46% in 2023. 
• By product, the ferrosilicon segment is expected to grow at a notable CAGR of 6.81% during the predicted period. 
• By application, the carbon and low alloy steel segment held a dominant presence in the ferroalloys market in 2023. 
• By application, the cast iron segment is projected to expand at the fastest CAGR of 7.03% over the forecast period.

Asia Pacific Ferroalloys Market Size and Growth 2024 to 2034

The Asia Pacific ferroalloys market size is exhibited at USD 33.88 billion in 2024 and is projected to be worth around USD 76.59 billion by 2034, expanding at a CAGR of 8.49% from 2024 to 2034.

Asia Pacific dominated the ferroalloys market in 2023. The growth of the market is attributed to the rising industrialization, and the demand for steel material products from the various end-use industries is driving the growth of the market. The rising investment and the development of the steel industries in countries like India and China are driving the demand for ferroalloys. The rising demand for steel in construction and consumer products due to the rising population is contributing to the growth of the ferroalloys market in the region.

• In September 2024, India Metal & Ferro Alloys declared the ICRA vide its letter dated 4 September 2024 announced the affirmed the short-term rating at [ICRA]A1+ (pronounced ICRA One plus) and long-term rating at [ICRA]AA- (Stable) (pronounced ICRA Double A Minus Stable). 
• In September 2024, the JSW Group is planning to launch the steel plant in Jagatsinghpur, Odisha, having an investment worth US$ 7.8 billion, which is Rs. 65,000 crore. The plant will create 30,000 jobs with a capacity of 13.2 million tons of steel per year.
• In February 2024, JSW Steel Plans to collaborate with Japan's JFE Steel Corporation with a 50:50 investment worth US$ 661.9 million which is Rs.5,500 crore for establishing the plant in Karnataka. 

• India is the 2nd largest producer of crude steel having an output of 125.32 MT of finished steel and crude steel production of 121.29 MT in FY23.
• The demand for domestic steel in India is growing by 9-10% in FY25, as per the ICRA. 
• India’s steel production is expected to grow by 4-7% to 123-127 MT in FY24.
• In the last 10-12 years, India has expected significant growth in the steel industry. The production of steel has increased by 75% since 2008, and the demand for domestic steel has increased by 80%. 
• India’s crude steel production stood at 36.6 MT in April-June 2024.
• India’s finished steel production stood at 35.8 MT in April-June 2024.
• The export of the finished steel is 3.4 lakh metric tonnes (LMT), and the import is 5.5 LMT. 
• The consumption of per capita steel was 86.7 kgs in FY23, and the consumption of finished steel was 135.90 MT in FY24.

North America has anticipated significant growth during the forecast period. The growth of the market is owing to the rising construction industry, and the demand for steel in the various end-use industries is driving the expansion of the steelmaking industry, causing a higher demand for ferroalloys. Regional countries like the United States and Canada are economically developed region that boosts industrialization and infrastructural development in the countries that collectively drive the growth of the ferroalloys market across the region. 

• The U.S. import of steel mill products was 13.9 million tons in 2024, an increase of 2.2% from 13.6 million tons in YTD 2023.
• Canada accounted for the largest share of the U.S. imports with the volume of YTD 2024 at 22.7%, followed by Brazil (16.4%), Mexico (12.7%), South Korea (9.9%), Vietnam (4.4%), and Japan (3.8%). 
• The U.S. production decreased 1.5% from 6.8 million metric tons in June 2023

Market Overview

The ferroalloys are generally known as the mixture or alloy of various other elements than carbon. The ferroalloys contain iron in high proportion. The ferroalloys also contain elements, including manganese, chromium, or aluminum. Ferroalloys are specially used in the production of metal, and the steel industry is known as the largest consumer of ferroalloys due to its high corrosion resistance, which makes it ideal for the manufacturing of steel and stainless steel. It is made in an electric arc furnace. There are different types, including ferrochrome, ferromanganese, ferromolybdenum, ferrosilicon, ferronickel, ferrotitanium, ferrotungsten, and ferrovanadium. 

How Can AI Impact the Ferroalloys Market?

Artificial intelligence (AI) plays a significant role in ferroalloys production and manufacturing with higher precision. Artificial intelligence helps in the production of ferroalloys in a shorter time. The AI algorithms analyze the mineralogical and chemical composition of size, raw material, and humidity of particles that help in the perfect mixture of ferroalloys that can be used in various end-use industries.

Ferroalloys Market Growth Factors

• Rising industrialization: The rising economic stability in various countries and the growing demand from consumers for different goods and products are contributing to the expansion of the ferroalloys market.
• The rise in economic stability: The rising population and the rising disposable income in the population are driving the demand for the various industries that anticipated the higher demand for steel products in the industries, contributing to the expansion of the market.
• The increasing manufacturing industries: The rising manufacturing industries in the countries due to the increasing demand for steel material products in the industrial equipment, raw material, and end-use products boosts the demand for ferroalloys. 
• Demand in steel making: The rising consumption of steel in various end-use applications such as in electronics, the construction industry, kitchenware, and other consumer products is boosting the demand for the steel-making industries which is anticipated to drive the growth of the ferroalloys market.
• Government interventions: The rising government intervention in the manufacturing industries, especially in the steelmaking industries, for the infrastructural development is contributing to the expansion of the market.

Market Scope

Market Dynamics

Driver

Rise in the construction industry

The rising population and the demand for the construction industry for residential and commercial purposes are anticipated to contribute to the expansion of the steel manufacturing plants and industries that accelerate the demand for the ferroalloys market. Ferroalloys are highly used in steel making due to their several benefits, such as corrosion resistance properties, durability, high tensile strength, weldability, and toughness, which makes them the ideal choice for building the structure. The rising construction industry and further investment in infrastructural development drive the growth of the ferroalloys market.

Restraint

Fluctuating prices

The manufacturing of the ferroalloys depends upon several other raw materials, which face continuous fluctuations in cost that directly affect the cost and manufacturing of the ferroalloys, limiting the growth of the ferroalloys market.

Opportunity

Advancement in the use of ferroalloys

The ongoing research and development programs in the ferroalloys industries are driving the opportunities in the ferroalloys market. The innovation in ferroalloys and their substitutes and their expanding use in various end-use industries and applications such as automobiles, turbines, aircraft engines, and others. Its lightweight and bio-compatibility make it ideal for the making of various end-use applications and products.

Product Insights

The ferro silico manganese segment dominated the market in 2023. The rising demand for ferro silico manganese in the steel industry and the increasing demand for steel in day-to-day life and industrial activities are driving the expansion of ferro silico manganese. Ferro silicon manganese is the alloy or mixture of iron and manganese that contains about 80% of manganese. The Ferro silico manganese has metallurgical properties, including increased strength, toughness, hardness, and hardenability. The increasing consumption of steel and the demand for stainless steel from the various end-use industries such as automobile, consumer goods, electronics, and others, and the rising investment in the expansion of the steel industries in the various regional countries are accelerating the growth of the ferro silico manganese segment.

The ferrosilicon segment is expected to grow substantially during the predicted period. The ferrosilicon is the alloy of the silicon and iron. Steel chips, coke, and quartz are raw materials smelted by the iron silicon alloy’s electric furnace. The ferrosilicon is highly used in the steelmaking industry. The ferrosilicon in the steelmaking industry is used for diffusion deoxidation and precipitation deoxidation. It has properties such as high corrosion resistance and high temperature resistance.

Application Insights

The carbon and low alloy steel segment held a dominant presence in the ferroalloys market in 2023. Carbon and low-alloy steel have several leading properties in the mechanical world. Carbon and low alloy steel have great technological properties, such as hot and cold processing and heat treatment, and it is highly in demand from end-use industries such as ships, engineering plants, buildings, automobiles, and others. They have increased strength, welding properties, corrosion resistance, and others.

The cast iron segment is expected to grow the fastest in the market over the forecast period. Cast iron is known as the class of iron-carbon alloys with more than 2% of the carbon content and around 1-3% of the silicon content. Cast iron is known as one of the oldest ferrous metals, and it is used in indoor or outdoor ornament and construction. Cast iron is composed of carbon, iron, silicon, and small traces of manganese, sulfur, and phosphorus, which also have 2% to 5% of the carbon content. Cast iron has good properties of compression. Cast iron is majorly used in the consumer goods industry, such as in the making of cookware, due to its superior heat retention, versatility in cooking, longevity, and durability, non-stick properties, economically, affordable, ease of cleaning and maintenance, lightweight, and aesthetic look in the kitchen.

Ferroalloys Market Companies

• S.C. Feral S.R.L
• SAIL
• Samancore Chrome
• Gulf Ferro Alloys Company (Sabayek)
• Glencore
• Jindal Group
• Shanghai Shenjia Ferroalloys Co. Ltd
• Tata Steel Limited

Recent Developments

• In December 2023, Kazakhstan plans to launch a new ferroalloys plant with a capacity of 80 thousand tons of ferrosilicon in the Ekibastuz, Pavlodar region. The company’s product will be delivered in Japan, the United States, South Korea, Europe, and Turkey.
• In January 2024, Kazakhstan’s ferrous metallurgy industry produced 2 million tons of ferroalloys, 4 million tons of steel, 896,000 tons of reinforcement for construction, 2.4 million tons of rolled flat steel, and 305,000 tons of steel pipes in 2023. Furthermore, the metals plant producing fitting was launched in Taraz with a capacity of 330,000 tons. 

Segments Covered in the Report 

By Product

• Ferrochrome
• Ferromanganese
• Ferro Silico Manganese
• Ferro Silicon

By Application

• Carbon & Low Alloy Steel
• Stainless Steel
• Alloy Steel
• Cast Iron
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa