San Francisco, 15 April 2024: The Report Ferrosilicon Market Size, Share & Trends Analysis Report By Application (Deoxidizer, Inoculants), By End-use (Stainless Steel, Cast Iron), By Region, And Segment Forecasts, 2023 - 2030

The global ferrosilicon market size is expected to reach USD 13.67 billion by 2030, registering a CAGR of 2.5% over the forecast period, according to a new report by Grand View Research, Inc. Rising demand for ferrosilicon in the steel and cast iron industries is anticipated to contribute to market growth over the forecast period. Ferrosilicon is used as a deoxidizer in the steel industry to prevent the loss of carbon during the production process. As a result, rising investment in the steel industry is anticipated to augment the market growth. For instance, in January 2022, POSCO commenced construction of a new galvanized steel plant in Tangshan, Hebei, China, which is jointly owned by HBIS Group.

The USD 600 million plants are anticipated to have an annual production capacity of 900 kilotons and will supply galvanized steel sheets to the automotive industry. Furthermore, due to their long life span and good compressive strength, cast iron pipes are widely used in plumbing applications. Companies involved in cast iron pipe production are expanding their capacity, thereby fueling ferrosilicon consumption. For instance, in December 2021, AMERICAN SpiralWeld Pipe Company, a producer of cast iron pipe, announced its decision to invest USD 40 million to expand its operation in Richland County, U.S. Furthermore, rising investments in China’s construction industry are expected to benefit market growth.

For instance, China initiated five major infrastructure projects in the third quarter of 2021, one of them was an investment of USD 4,793 million in the construction of a railway line from Liuzhou to Wuzhou covering a distance of 237.78 kilometers. Such projects are aiding the consumption of steel and related products, thereby, positively influencing market growth over the forecast period. The market is competitive with a presence of a large number of players scattered across different regions. To uphold and expand their presence, market vendors are involved in acquisition activities. For instance, in February 2022, Elkem ASA acquired the remaining 50% stake in the Salten energy recovery plant from Kvitebjørn Energi, thus, taking 100% ownership. This acquisition aims to enable the production of environmental-friendly ferrosilicon grade.

The growth is anticipated to be driven by the rising use of ferrosilicon as a deoxidizer in the steel industry and as an inoculant in cast iron. Growing demand for steel is compelling producers to increase their production capacity. For instance, in January 2022, AM/NS India signed an MoU with the Government of Gujarat, under which the company will invest over USD 22.0 billion in six projects across the state. An investment of USD 5.97 billion will be for expanding its steel production from 8.6 to 18.0 million tons per annum in the Hazira plant.

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The U.S. is one of the largest steel producers in the world. Its production reached 86.0 million tons in 2021, up by 18.3% from 2020. The rise in production was attributed to increasing investments toward infrastructural developments, supporting steel demand in the country. For instance, in 2021, the U.S. President signed the Infrastructure and Jobs Act, which allocated USD 550 billion for improving the infrastructure of roads, airports, ports, and freight rails. However, in 2022, production declined by 5.9%.

Ferrosilicon Market Report Highlights

• The deoxidizer segment accounted for the largest revenue share of over 69.0% in 2022, and this trend is expected to continue across the predicted timeline. It finds use in steel production. According to World Steel Association, in 2022, global crude steel production was 1,831.5 million tons.
• Based on end-use, cast iron is anticipated to register the fastest CAGR of 3.4%, in terms of revenue, across the forecast period, owing to the use of ferrosilicon as an inoculant in the industry
• Further, the shifting trend from non-stick cookware to those made up of cast iron, owing to growing concerns about potential health risks, is projected to emerge as the key driver for cast iron end-use segment growth over the forecast period.
• Based on region, Asia Pacific dominated the market and accounted for a revenue share of nearly 67.0% in 2022. The rising production of automobiles and investments in the construction industry are influencing the demand for ferrosilicon in the region.
• In North America, the market is projected to witness a CAGR of 2.2%, in terms of revenue, over the forecast period. The U.S. is anticipated to be the major market of the North American region over the forecast period.

The growing investments in the infrastructure have increased competition in the industry, compelling market players to indulge in mergers & acquisitions and capacity expansions. For instance, in December 2020, Cleveland-Cliffs Inc. acquired ArcelorMittal USA and its subsidiaries. The acquired assets will be combined with existing facilities, transforming the company into a vertically integrated producer of iron and steel.

Furthermore, growth in the electric vehicles (EVs) industry is benefitting market growth. For instance, in November 2021, POSCO announced to invest KRW 1 trillion (~USD 831.4 million) in building a non-oriented electrical steel plant with an annual production capacity of 300 kilotons in Gwangyang. The plant will cater to the drive motors of EVs.

Ferrosilicon Market Report Scope

Also, in September 2021, NLMK announced the commissioning of a new electrical steel laser treatment unit, which is expected to have a capacity of 54 kilotons per year. The company is also building an electrical steel plant in India with 64 kilotons annual capacity. Ferrosilicon is used in electrical steel production, and thus, such investments are expected to propel market growth over the forecast period.

The market is highly competitive with the presence of numerous players. The key players are adopting strategic initiatives such as capacity expansions and mergers & acquisitions to expand their share in the industry. For instance, in November 2021, BMML, a ferrosilicon producer in Bhutan, made a proposal to the administration in the country to set up a ferrosilicon plant at Chengmari. The project is worth more than USD 11.96 million. 

List of Key Players of Ferrosilicon Market

• Elkem ASA
• Eurasian Resources Group
• Ferro Alloys Corporation Limited (FACOR)
• FINNFJORD AS
• Ferroglobe
• IMFA
• OM Holdings Ltd.
• Russian Ferro-Alloys Inc.
• SINOGU CHINA
• VBC Ferro Alloys Limited