Ferrochrome Market Trends

Growth Drivers

• Burgeoning Automotive Industry – With a rapid boom in the automotive industry, the utilization rate of ferrochrome is anticipated to increase. As vehicle manufacturers use steel as the main raw component to produce vehicles, ferrochrome is used to increase the strength of the steel and enhance the appearance of the final product. For instance, around 700 – 900 kg of steel is required to produce one vehicle.
• Rapid Swelling of the Construction Industry – The development in the construction sector requires a huge amount of steel for various purposes during building infrastructures along with residential, commercial, and industrial spaces. As ferrochrome is an important alloy to strengthen the power of special steels, the growth of the steel industry is anticipated to bring lucrative profitable opportunities for the expansion of the global ferrochrome market size. The global construction industry is anticipated to stand at almost USD 15 trillion by 2030.
• Increase in Investments for Manufacturing Activities – Recent focus on the manufacturing spectrum has attracted huge amounts of investments which is estimated to boost the growth of the manufacturing industries such as heavy equipment, consumer goods, electronics, and others. The development of such industries is anticipated to favor the steel demand and subsequently ferrochrome.

Challenges

• Easy Availability of Cost-Effective Alternatives – Carbon fiber is considered to be an effective replacement for stainless steel for various industries. The main reason is the ability of carbon fiber to absorb large amounts of impact energy, reduce the overall weight of the product, and increase its durability. This factor is anticipated to hamper the growth of the global market in the upcoming years.
• Requirement of Huge Amounts of Electricity
• Stringent Government Rules