Ferrosilicon Market Trends

Growth Drivers

• Use of Ferrosilicon in Steel Manufacturing to Increase Its Strength – Since silicon and oxygen have a very strong chemical reactivity with one another, it makes ferrosilicon a powerful deoxidizer that is utilized in the steel-making process. The rising production of silicon is expected to boost the ferrosilicon market in the forecasted period. According to the U.S. Geological Survey, the total production of silicon increased from 277 in 2020 to 310 in 2021.

• Growing Demand for Ferrosilicon in the Automobile Industry owing to Reduction in Weight – Ferrosilicon use and production will rise proportionately with the use of steel as a raw material in the automobile industry. Therefore, it is predicted to increase the growth of the global ferrosilicon market. Global sales of autos increased from 62 million units in 2020 to over 67 million in 2021.

• Rising Demand for Atomized Ferrosilicon Which is Used as Powder in Automobile Manufacturing – Whenever, the demand of a product increases its supply in that case the price increases. Therefore, it is anticipated to surge the growth of the global ferrosilicon market. In March 2022, United States recorded an increase of 12.9% in the prices of ferrosilicon, including its atomized version.

• Increased Production of Cast and Pig Iron Across the World to Meet the Demand – Ferrosilicon is used as an inoculant during the production of cast iron, and it is expected to surge the market’s growth in the upcoming years. According to the U.S. Geological Survey, the world’s total production of pig iron increased from 1,310 million metric tons in 2020 to 1,400 million metric tons in 2021.

Challenges

• Environmental Challenges Regarding Emissions – where the concern about the environmental situation and the unwanted side-effects of human activities is growing. Also, all aspects of the production and use of ferroalloys are energy-intensive and the processes themselves have an impact on the environment. Hence, it is anticipated to hinder the market’s growth.
• Managing Hazards such as Harmful Chemicals
• Slow Rate of Growth