Ferroalloys Market Trends

Growth Drivers

• Strong Demand for Steel in Construction: The demand for steel in the construction industry was predicted to increase by 6% in 2021 and 3% in 2022, according to a study. This is expected to positively impact the revenue generated in the ferroalloys market. In China and other developed countries, steel consumption is expected to be driven by government-sponsored infrastructure spending.

• Use in the Deoxidation of Steel- Ferroalloys are used as strong deoxidizers in the production of steel. The U.S. Geological Survey reports that while net sales remained largely flat during the first half of 2022 compared to the same period in 2021, total output climbed by 5%.

• Growing Use of Steel in the Automobile Sector – As steel is a key raw material in the automotive sector, both the use and production of ferroalloys will increase proportionally. Over 67 million vehicles were sold globally in 2021, up from 62 million in 2020. This is a result of the recovering vehicle industry, which had seen a significant decline in income as a result of the pandemic.

• Increased Production of Cast and Pig Iron – Cast iron and pig iron, which are largely made of iron and carbon, are used in a variety of industrial processes, including those that create steel and other alloys, produce building materials, and create machinery and equipment. A larger demand for ferroalloys, which are utilized to improve the qualities of these items, would result from the increasing manufacturing of these products. When making cast iron, ferroalloys are injected into the process as an inoculant. The global production of pig iron climbed from 1,310 million metric tons in 2020 to 1,400 million metric tons in 2021, according to the U.S. Geological Survey.

• Strong Demand for Noble Ferroalloys – Noble ferroalloys include ferroboron, ferromolybdenum, ferronickel, ferroniobium, ferrophosphorus, ferrotitanium, ferrotungsten, and ferrovanadium. Apart from deoxidizing and refinement of steel, noble ferroalloys such as ferrotungsten are used to create steel items for particular applications. Owing to their high melting point electrical properties, ferroalloys such as ferrotungsten are used in the aerospace industry, apart from applications in electron microscopes. The U.S. Geological Survey reports that the world production of noble ferroalloys increased to 1,40,00,000 metric tons from 1,15,00,000 metric tons.  

Challenges

• Government Restrictions Regarding the Management of Hazardous Chemicals - The market for ferroalloys may also be impacted by governmental limitations and the control of hazardous substances. Many of the techniques used to produce ferroalloys contain dangerous substances that may be harmful to the environment and human health, such as heavy metals and toxins. Stricter rules are being implemented by governments all around the world to regulate the creation, consumption, and disposal of these substances.
• Rising Use and Development of Alternatives to Steel