Ferroalloys market has great prospects
Asia-Pacific ferroalloy market will grow by 5% annually from 2018 to 2025. The increase in construction activity, coupled with the growth of the manufacturing sector due to the dominance of large, medium and small industries and the huge reserves of iron in the region, will make it a prominent regional player in the global ferroalloy market.
The regional volume of the ferroalloys market by 2025 will exceed USD 70 billion. Population growth and legislative decisions to stimulate the infrastructure sector in developing countries are increasing steel consumption. This plays an important role in propelling the ferroalloy market in a positive direction. The extensive presence of iron ore around the world with the growing demand for steel in the industrial sector due to the lack of substitutes will spur the growth of the ferroalloy market in the coming years.
Ferroalloy production costs will remain high due to the high energy consumption and quality control requirements. In addition, fluctuations in fuel prices change the total cost of the product. There are strict rules and industry standards enforced by various countries and regulatory bodies for the steel industry around the world. These aforementioned factors may hold back the growth of the ferroalloys market over the forecast period of time.
Ferrochromium will be the market leader, trading around USD 23 billion in 2025, showing a decent growth rate over the forecast time frame. Ferrochromium is mainly used in the production of stainless steel and tool steel, providing excellent corrosion resistance properties. Steel consumption is expected to increase with the growth of the construction sector in developing countries, which will lead to increased demand for ferrochromium in the near future.
The global ferroalloy market, depending on the application, is segmented into carbon steel, alloy steel, stainless steel and others. Among them, stainless steel is likely to witness annual growth of about 5.5% between 2018 and 2025. Increased industrialization around the world will further boost demand for stainless steel.
Some of the major players in the ferroalloys market are Jindal Group, Steel Authority of India Limited (SAIL), Gulf Ferroalloys Company, Tata Steel, Pertama, Shenjia Ferroalloys, Brahm Group, OM Holdings, Arcelor Mittal, Nikopol, China Minmetals Corporation .