The global ferrosilicon market, valued at approximately US$10.2 billion in 2021, is poised for sustained growth in the foreseeable future. This growth is driven by the steel and cast iron sectors, which rely on ferrosilicon as a critical component in their production processes.
- Steel Industry Investment Spurs Market Expansion: Ferrosilicon plays a vital role in the steel industry as a deoxidizer, preventing carbon loss during manufacturing. With rising investments in the steel sector, the demand for ferrosilicon is expected to soar. Notably, projects like the new galvanized steel facility in Tangshan, China, initiated by POSCO, are set to contribute significantly to this growth. Such projects are poised to provide galvanized steel sheets to the automotive industry, further boosting ferrosilicon demand.
- Cast Iron Industry Strengthens Market: Cast iron pipes, renowned for their durability and compressive strength, are in high demand for plumbing applications. Manufacturers of cast iron pipes are increasing their production capacities, leading to a surge in ferrosilicon demand. Initiatives like the US$40 million investment by the American SpiralWeld Pipe Company in expanding their operations in Richland County, USA, are indicative of this trend.
- Competitive Market Dynamics: The global ferrosilicon market is characterized by the presence of numerous companies spread across various regions. Market players are actively engaging in acquisition-related activities to maintain and enhance their market presence. For instance, Elkem ASAs acquisition of the Salten energy recovery plant in February 2022 is aimed at producing environmentally-friendly ferrosilicon grade.
- Diverse Growth Drivers: Factors such as rapid urbanization, industrialization, increased sales of luxury cars, rising construction activity, and surging demand for consumer electronics are contributing to the positive outlook for the ferrosilicon market.
Impact of COVID-19 on the Ferrosilicon Market
The global ferrosilicon market, like many other industries, faced challenges due to the COVID-19 pandemic. Lockdowns and supply chain disruptions disrupted manufacturing and supply chain operations. Additionally, reduced consumer spending impacted demand, especially in the construction sector. However, as regional regulatory authorities ease restrictions, the ferrosilicon industry is expected to recover gradually.
Driving Factors for Ferrosilicon Market Growth
- Steel Industrys Ascendancy: Ferrosilicon enhances the mechanical, chemical, and physical properties of steel, making it essential for various industries, including automotive, construction, and manufacturing. The steady increase in global steel production is a driving force behind the markets growth.
- Demand from Automotive Sector: The automotive industry is continually working to develop lightweight steel for improved fuel efficiency. The expansion of infrastructure projects in the auto sector, such as railroads and buildings, is expected to drive ferrosilicon demand.
- Potential Alternatives: While ferrosilicon remains a dominant player, high carbon silicon is emerging as a cost-effective alternative. Its adoption by steel producers for deoxidation is poised to influence the market dynamics.
- Inoculants and Cast Iron: The inoculants segment, driven by the demand for cast iron cookware, is expected to witness significant growth. Additionally, cast iron, used extensively in rail infrastructure projects, is anticipated to experience rapid expansion.
- Asia Pacific Dominance: Asia Pacific is expected to lead the ferrosilicon market due to increased steel production and investments in the automotive sector. Countries like China, India, and Japan are set to be major contributors to global crude steel production.
- North American Growth: The North American ferrosilicon market is projected to expand substantially, driven by the electric vehicle (EV) industrys growth, higher construction spending, and investments in renewable energy.
Key players in the global 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.
As the global ferrosilicon market continues its upward trajectory, industry leaders and newcomers alike are poised to seize opportunities in this dynamic and evolving landscape.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/ferrosilicon-market
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