Global Ferrosilicon Market 2024–2033

Reports Description

Global Ferrosilicon Market size was valued at USD 11.09 Billion in 2023 and is expected to reach USD 15.08 Billion by 2032, at a CAGR of 2.7% during the forecast period 2024-2033.

Ferrosilicon is an alloy of iron and silicon. It is a silvery-grey, brittle material with a high melting point. Ferrosilicon is used in various applications, including steel production, smelting, and chemical production.

Ferrosilicon Market - Significant Growth Factors

Growing Usage of Ferrosilicon in Steel Industry

An increasing utilization and adaptation of ferrosilicon as a deoxidizer in the steel industry is mainly driving the ferrosilicon market. The rapidly expanding construction industry across the globe is propelling the demand for steel manufacturing.

In Steel manufacturing, Ferrosilicon is used as a source of silicon to reduce metals from their oxides and to deoxidize steel and other ferrous alloys. Ferrosilicon enhances the ductility and strength of steel. An increasing demand for steel in automotive, construction and manufacturing facilities is propelling the production of steel across the globe, which in turn boosts the demand for ferrosilicon across the globe.

For instance, in 2021, the U.S. steel industry’s production output was estimated at 86.0 million tons an increase of 18.3% as compared to 2020. Furthermore, a significant rise in investments in infrastructure development in China, India, the U.S. Germany is expected to stimulate the ferrosilicon market during the forecast period.

With expanding economies, the demand for new infrastructure, and automotive vehicles is also increasing, which in turn propels the demand for steel because it is the main material used in the manufacturing of automotive components and building construction projects. Thus, above mentioned factors are expected to boost the ferrosilicon market during the forecast period.

Supportive government initiatives to increase the consumption of steel in various industries and to reduce carbon emissions are expected to drive the demand for the ferrosilicon market during the forecast period.

High potential for infrastructural developments in many emerging economies such as China, India, ASEAN, South Africa, and Brazil, coupled with continuous investment in the automobile industry is propelling steel production, thereby augmenting the growth of the ferrosilicon market.

Restraints

The supply chain disruptions created by the COVID-19 pandemic, and the Russia-Ukraine war significantly impacted the growth of the ferrosilicon market. Logistics challenges are caused by various geopolitical conflicts creating difficulties in obtaining raw materials and increasing transportation costs.

Furthermore, the slowdown in economic growth particularly in the construction, automotive and manufacturing sectors declined the steel demand and consequently the ferrosilicon consumption, thereby restraining market growth.

The lack of universal directives about applications of ferrosilicon is also retraining the market growth. Every country has different rules and regulations for ferrosilicon applications. Companies find it very difficult to cope with such country wide regulations, which in turn discourage the investment in the market, thereby restraining the market growth.

Market Opportunities

Increasing Automotive Production

Growing automotive production across the globe is propelling the demand for high quality steel for automotive component manufacturing. Automotive manufacturing companies are constantly focusing on developing lightweight of vehicles that improve fuel efficiency.

Ferrosilicon is used in the manufacturing of various automotive components such as chassis, engine blocks and powertrains. The growing production and sales of electric vehicles (EVs) are expected to create lucrative opportunities for the ferrosilicon market. For instance, electric vehicle (EV) sales United States increasing rapidly, estimated 918,500 light electric vehicle sales in 2022.

Furthermore, the growing emphasis on sustainability and the development of environmentally friendly steel production technologies are expected to boost the demand for high-quality Ferrosilicon, creating new opportunities for the ferrosilicon market.

Ferrosilicon is a critical component in electrical steel production. The key players operating in the ferrosilicon market need to strategically adapt to these trends to capitalize on such emerging opportunities and maintain their competitive edge.

Ferrosilicon Market Segment Analysis

The global ferrosilicon market is segmented by type, by mode of application, by application and by region. By type, atomized ferrosilicon held the highest market share in 2022 and is expected to keep its dominance during the forecast period owing to its excellent properties.

Atomized ferrosilicon is used as a critical deoxidizer and alloying agent in steel production. Atomized Ferrosilicon possesses a spherical shape. It is made by atomizing ferrosilicon powder with water atomization technology.

By mode of application, deoxidiser dominated the global ferrosilicon market with a market share of 56.78% in 2022 and is expected to keep its dominance during the forecast period. Ferrosilicon is widely used as a deoxidiser in steel manufacturing to enhance ductility, strength and quality.

Ferrosilicon is used for precipitation deoxidation and diffusion deoxidation because The chemical affinity between silicon and oxygen is very large. Brickiron is also used as an alloying agent in steel making.

By application, stainless steel dominated the global ferrosilicon market in 2022. Growing demand for ferrosilicon in stainless steel production to enhance its aesthetic appeal, wear resistance, and corrosion resistance is propelling the growth of this segment.

Growing investment in stainless steel manufacturing is expected to create lucrative opportunities for ferrosilicon in this segment. For instance, in December 2021, Jindal Stainless Ltd. secured USD 82 million from KfW IPEX-Bank to expand its production facilities in India. Thus, such expansion is expected to boost the demand for ferrosilicon in stainless steel production.

Report Scope

Ferrosilicon Regional Insights:

By region, the global ferrosilicon market is dominated by the Asia Pacific region with a market share of 63.0% in 2022 owing to increasing infrastructural developments and continuous investments in the automobile industry.

Furthermore, emerging countries and sub regions such as China, India, South Korea, ASEAN and others are expected to drive the growth of this region during the forecast period. The region is witnessing a surge in investments in steel capacity expansions across various countries such as China and India, which is expected to fuel the ferrosilicon demand, thereby driving market growth.

North America is expected to hold the second largest market share of the global ferrosilicon market during the forecast period. The growth of the EV industry in the U.S. and Canada coupled with rising construction spending is propelling the ferrosilicon demand in this region, thereby market growth.

The U.S. is a major country contributing to the growth of this region. Growing investment in infrastructure projects propelled the steel demand and consequently the ferrosilicon in the United States.

Europe held the third largest market share in ferrosilicon market. Evolving steel industry trends and the presence of the developed automotive industry in this region are propelling the market growth. Increasing expansion of electrical vehicle manufacturing facilities due to growing sales of EVs in this region is expected to propel the market growth.

For instance, in Europe, there are 3.3 million units of EVs sold in 2023 and sales are expected to reach 3.6 million by 2024. Germany, France, Russia, the U.K., and Spain are major contributors to the growth of this region. Thus, such rapid expansion of EV vehicle manufacturing in Europe is expected to boost the demand for Steel, thereby market growth of ferrosilicon in this region.

Middle East and Africa held the fourth largest market share of the global ferrosilicon market in 2022 owing to increasing infrastructural activities in GCC and South Africa.

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List of the prominent players in the Ferrosilicon Market:

• American Elements
• Assmang Limited
• China National BlueStar (Group) Co. Ltd.
• Cometal S.A.
• DMS Powders
• Elkem
• Eramet SA
• ERG Brazil
• Ferro Alloys Corporation Limited (FACOR)
• FerroAtlántica (part of Grupo FerroAtlántica)
• Finnfjord AS
• Georgian American Alloys Inc.
• Globe Specialty Metals
• Harsco Metals Poland S.A.
• Indian Metals and Ferro Alloys Limited (IMFA)
• Maithan Alloys Ltd
• Mississippi Silicon
• Reade International Corp.
• C. Feral S.A.
• Sarawak Aluminium Company Sdn Bhd (SALCO)
• Silicon Smelters (Pty) Ltd
• Simcoa Operations Pty Ltd
• Sinosteel Jilin Ferroalloy Corporation
• Shyam Metalics
• Others

These key players are adopting various organic and inorganic growth strategies such as mergers & acquisitions, joint ventures, strategic alliances, collaborations, etc. to enhance their production capacities and revenues.

Recent Development in Market

• In March 2023, American Elements announced the launch of AE Fusion Energy with the addition of new production facilities to meet the growing demand for advanced materials associated with R&D & scaled production at its fusion energy partner customers. In this new division American Elements will produce of certain high purity oxides, ferrosilicon, stable isotopes, refractory metals & alloys, high-temperature ceramics, laser crystal raw materials and molten salts.

• In December 2021, Shyam Metalics announced the expansion of its integrated production capacity of steel-making and ferroalloys. Through this plan, they will reach a production capacity of up to 5 MTPA by 2025.

• Recently, Elkem ASA signed an agreement to acquire REC Solar Norway AS from REC Solar Holdings AS, a subsidiary of Reliance Industries. This transaction will give Elkem control of industrial areas and facilities in Norway, including areas next to Elkem’s activities at Fiskaa in Kristiansand. In the acquired industrial area Elkem is planning to expand its production facilities.

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America