The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including the Ferroalloys Market.
It was estimated prior to this unanticipated outbreak that the Ferroalloys Market was expected to grow at a CAGR of 5.7% during the forecast period. However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
Increasing steel production across the world is the prime factor that is contributing to the demand for ferroalloys. Further, increasing application of steels in various industries such as construction, shipbuilding, automotive, etc. is driving the ferroalloys market growth. Rising construction and infrastructure activities in emerging economies such as India and China in the Asia-Pacific region is one of the key factors fueling the growth of the market.
Ferroalloys are iron-based alloys with a great proportion of other elements such as silicon, chromium, manganese, and others. These alloys when primarily used in the production of carbon and stainless steel are the added elements into molten metal during the steel manufacturing process. Owing to their superior properties such as high tensile strength and excellent durability, ferroalloys are majorly used in various end-use industries such as automotive, steel, construction, aerospace & defense, electronics, metallurgical, oil & gas, and healthcare.
This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision making and growth strategy formulation based on the opportunities present in the market.
Based on the product type, the market is segmented as ferrochrome, ferromanganese, ferro silicomanganese, ferrosilicon, and others. The ferrochrome segment held the largest share of the market in 2019 in terms of value, whereas ferro silicomanganese was the dominant segment in terms of volume in 2019. The ferro silicomanganese is also expected to register the fastest growth during the forecast period in terms of value as well as volume. Ferrochrome is a primary raw material for stainless steel manufacturing, as it provides aesthetic appearance and corrosion resistance to it. The increasing usage of ferrochrome for manufacturing various car components such as, sprocket assemblies, rods, couplings, and crankshafts further creates healthy opportunities for the segment in the near future.
Based on the application type, the ferroalloys market is segmented as carbon & low alloy steel, stainless steel, alloy steel, cast iron and others. The carbon & low alloy segment held the largest share of the market in 2019, whereas, cast iron segment is likely to witness the fastest growth during the forecast period in terms of value. Rising demand for carbon steel from the construction industry along with rapid urbanization leading to increasing investments in infrastructure, especially in the developing economies are the prime factors for carbon & low alloy segment’s growth in the market.
In terms of regions, Asia-Pacific is estimated to be the largest market for ferroalloys during the forecast period in terms of value, with China, India, and Japan being the countries with lucrative growth opportunities. The growth of the region’s market is mainly driven by the rapidly increasing steel production and rising demand for steel for construction activities in the region. Further, macroeconomic trends such as an increase in disposable income and growing industrialization are some of the major drivers for the Asia-Pacific’s ferroalloys market, creating lucrative growth opportunities for ferroalloy manufacturers in the region.
Some of the major ferroalloy manufacturers are-