Ferroalloys are alloys consisting of a combination of iron with a metal such as manganese, silicon, or carbon. They have various compositions and applications. The most common ferroalloy is ferromanganese with approximately 10% manganese content by weight. Ferrosilicon (ferro silico manganese) has about 2-4% silicon content by weight. Ferro alloys are the most common name for the engineering materials produced by melting and casting ferrous metals such as iron or steel with a suitable alloying element such as silicon, manganese, or carbon. The use of these alloys dates back to ancient times.
The ferro alloy market is booming due to the rise in demand for these metals, especially high carbon ferro manganese. The prices of these metals have increased exponentially over the last few years, with no end in sight. You can expect a steady increase in demand for ferrosilicon and silico manganese as well. The ferroalloy market has shown an unprecedented growth in the last few years. The growth of the ferroalloy market is attributable to increasing demand for ferrosilicon, which is used in the manufacture of semiconductor materials and capacitors. The demand for high carbon ferromanganese was driven by its use in steel production as a hardener.
Uses and Applications
The use of ferro alloys can range from polishing glass, to construction and various other uses. High carbon ferro manganese is used in the making of steel and stainless steel. Silico manganese is used in the production of glass, porcelain, enameled ware and pottery. These four types of ferro alloys have different properties that make them applicable for different uses. For example, when it comes to polishing glass, high carbon ferro manganese offers a brighter shine than silico manganese while also being more brittle and having less toughness. When dealing with construction projects, ferro silicon has a higher melting point which makes it easier to work with than silico manganese. Ferro silicon is also harder than but not as tough as high carbon ferro manganese.
The applications of ferro alloys can vary depending on the type. silicon manganese is used in the manufacture of steel, silico manganese is used in the production of oxygen-free copper, high carbon ferromanganese is used to make stainless steel, ferrosilicon is used in electronics and high carbon ferrosilicon is often found in construction materials. The process for extracting silicon from sand varies depending on the type of silicon that needs to be extracted.
Benefit Of Startup This Industry
The demand for ferro alloys is on the rise due to the increasing demands of silicon and manganese in electric vehicle, wind power, and solar power industries. Ferrosilicon producers can expect to see a significant increase in demand over the next few years. • High Carbon Ferro Manganese used to make stainless steel has also seen an increase in usage as countries around the world start to look for alternatives to using carbon steels. • Silico Manganese or SMI products are up sharply because it's an essential ingredient in producing lithium-ion batteries that store renewable energy from sources such as solar or wind. Globally, there are more than three dozen new mines planned to open over the next decade in order to keep up with growing demand.
Global Market Outlook
The global ferroalloys market size was valued at USD 42.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.1% from 2021 to 2028. This boom in the U.S. steel industry is mainly benefited by steel tariffs imposed by Trump Administration. In 2018, the Trump government imposed steel tariffs under section 232 of U.S. trade law. The government is focused to improve steel supply for industries such as infrastructure, armaments, and advanced military equipment. In the recent past, steel companies have started investing in the country to explore the opportunities in the country. Companies like Ak Steel, CMC, Steel Dynamics, and Cleveland-Cliffs have invested huge amounts in 16 major projects across the nation. Most of the projects will use the electric arc furnace method to produce the steel. Thus, the expansion of the steel industry in the U.S. is likely to attract significant steel demand over the coming years. As per the World Steel Association, the global production of crude steel reached 1,950.5 million tons in 2021, an increase of 3.7% from 2020. China was the leading producing country with production of 1,032.8 million tons in 2021. China was followed by India, Japan, the U.S., Russia, South Korea, Turkey and Germany. These leading countries are expected to remain the key markets for ferroalloy producers.
Conclusion
The ferro alloys industry has experienced significant growth over the past two decades and is expected to grow exponentially in the future. Demand for silicon metal, manganese metal, steel and various other ferroalloys will also be on the rise as developing countries’ populations continue to expand, with China accounting for more than half of global steel demand. The latest trend in metals is the use of ferro alloys to make steel and aluminum more durable. These alloys can also be used to create stainless steel, and the demand for them is growing at an exponential rate.
Key Players
· Shanghai Ferroalloys Works (China)
· Georgian American Alloys (USA)
· Gulf Ferroalloys Company (SABAYEK)
· Tata Steel (India)
· Brahm Group (India)
· Ferroalloy Corporation Limited (India)
· China Minmetals Corporation (China)
· Pertama Ferroalloys Sdn. Bhd. (Malaysia)
· SAIL (India)
· OFZ
· a.s (Slovakia)
· MORTEX GROUP (India)
· OM Holdings Ltd. (Singapore)
· Nikopol Ferroalloy Plant (Ukraine)
· Bafa Bahrain (Bahrain).
Capacity:
Ferro Silicon (70-75% SI) 6,500 MT Per Annum
High Carbon Ferro 22,000 MT Per Annum
Manganese (70-72% Mn)
Silico Manganese 16,000 MT Per Annum
(Mn 70% and Si . 15%)