Manganese Alloy Market Size, Share & Industry Analysis, By Type (Silicomanganese, High Carbon – Ferromanganese, Medium & Low Carbon – Ferromanganese, and Others), Application (Steel Manufacturing, Welding Accessories, Foundry, and Others), and Regional Forecast, 2020-2027

The global manganese alloy market size was USD 25,615.7 million in 2019 and is projected to reach USD 42,004.4 million by 2027, exhibiting a CAGR of 7.4% during the forecast period.

Manganese (Mn) alloys are mixtures of metals and metalloids along with the manganese metal. Several different types of Mn alloys have been developed and marketed, but the major categories are silicomanganese (SiMn), ferromanganese (FeMn), aluminum-manganese (AlMn), and nitrided manganese (MeN) alloys. These alloys vary in the content of manganese, carbon, silicon, iron, phosphorus, and nitrogen, which alter their performance and govern their utilization.

The primary application of Mn is in the steel industry wherein it is added mainly in the form of ferroalloys. According to the World Steel Association, the combined production of steel in China and India grew from 882.4 million metric tons in 2016 to 1,107.5 million metric tons in 2019, a total increase from 54.9% to 59.2% globally. Such growth in the production of steel is warranted by the expanding construction and automotive industries in the region and is expected to be the vital reason behind the high demand for manganese-based alloys for providing steel with excellent mechanical properties. Furthermore, these alloys are also being increasingly used in other applications such as chemicals, dyes, fertilizer, animal feed, and dry cell batteries, which is expected to provide the market novel growth pathways during the forecast period.

Disruption in Mining of Manganese Ore due to Spread of COVID-19 to Restrain Growth

The mining industry has been severely affected by the spread of coronavirus. The movement of man and material alike has been affected and the same has caused disruptions in the supply chain of the product. The top 5 manufacturers of manganese, namely, South Africa, Australia, China, Gabon, and Brazil are under complete lockdown for longer periods. Such restrictions have not only affected the mining activities in these countries but have also severely impacted the import-export activities. This has caused disruptions in the supply of manganese ore, as well as the production of manganese alloys.

Moreover, the production activities in the steel industry had come to a considerable halt during the first half of 2020 in major producing countries, such as China, India, and Russia. This has resulted in a significant lowering in the uptake of these alloys from the steel industry. However, as governments in these countries are trying to bring the working of its industries back on track, the market is expected to regularize in the next couple of years.

LATEST TRENDS

Shift in Production Activities towards Asian Countries is a Current Trend

Even though major mining sites of Mn ore are present in Africa and Australia, the manufacturing activities of these alloys is concentrated in the Asian countries, including China and India. According to the International Manganese Institution (IMnI), China alone accounts for about 70% of the SiMn production, while India further accounts for 12%. On the flip side, the production of HC FeMn is also concentrated in these countries and accounted for around 50% of the total global production.

Furthermore, a shift in production activities has been observed towards the Asian countries owing to the presence of cheap labor and high demand from the enormous steel industry in the region. For instance, the International Manganese Institute (IMnI) reported that the Mn alloy production in South Africa shrank from around 880 KT to 400 KT between 2014 and 2018, while the production in Malaysia expanded from 80 KT to 600 KT between 2016 and 2018. Such a shift in production activities is expected to satisfy the growing demand for these alloys in Asia Pacific.

DRIVING FACTORS

Growth of Steel Industry Expected to Be a Key Driver for Growth

Manganese alloy is primarily used in the production of alloy steels. The demand for steel products has grown considerably in the past few years owing to the increasing focus of governments of China, India, Brazil, and South Africa to build a robust infrastructure and dwellings for the growing population in these countries.  According to the World Steel Association, the production of steel has expanded from 1,606.3 million metric tons in 2016 to 1,869.9 million metric tons in 2019, growing at a CAGR of 5.2% between 2016 and 2019. Such growth in steel production is expected to be the key driving factor for the Mn alloys market growth.

Rising Demand for Manganese Steel from Automotive Industry to Create Growth Opportunities

The automobile industry has always sought materials that can provide enhanced strength to the body structure of the automobile. Steel has been the material of choice for cars and commercial vehicles manufacturers for the construction of vehicle bodies owing to its high strength-to-weight ratio and excellent impact resistance. As the automotive industry is expected to rejuvenate post-COVID-19 owing to the growing spending capacity of people, especially in the Asian and Latin American countries, the demand for steel is expected to gain traction during the forecast period. Besides, the demand for commercial vehicles for logistics and heavy works is also gaining impetus in the global market, which shall be a vital reason behind the lucrative growth in the demand for alloy steels and, in turn, shall fuel the growth of the overall market during the forecast period.

RESTRAINING FACTORS

Regulations Pertaining to Manganese Exposure May Hinder Demand

Even though manganese alloys are utilized in enormous quantities in the manufacturing of steel alloys, exposure to dust and fumes of manganese has been linked to poisoning which can cause impairment of motor skills and cognitive disorders in humans. Thus, in order to preserve human health, organizations such as the Occupational Safety and Health Administration (OSHA) and the National Institute for Occupational Safety and Health (NIOSH) have set permissible and recommended exposure limit for manganese at 5 mg/m3 and 1 mg/m3 over an 8-hour workday, respectively. Apart from that, they have also established that exposure to manganese for over 500 mg/m3 is dangerous to the life of human beings. Thus, such regulations are expected to create a hindrance to the adoption of manganese and its alloys in various end-use industries where direct exposure is possible.

SEGMENTATION

By Type

Silicomanganese to be the Dominant Segment During the Forecast Period

On the basis of type, the manganese alloy market analysis is segmented into silicomanganese, high-carbon ferromanganese, medium & low-carbon (MLC) ferromanganese, and others. Silicomanganese is the leading segment in the global market owing to the heavy demand for the manufacturing of manganese steel. The addition of silicomanganese in the steel manufacturing process helps in obtaining low carbon content in steels which further improves the purity and strength of such alloy steels. Owing to this property, this segment would account for a dominant share and is expected to further strengthen its position throughout the forecast period.

On the other hand, ferromanganese acts as a deoxidizer, desulphuriser, and degasser in steels. It helps in the elimination of nitrogen and other hazardous elements found during the smelting of iron. The addition improves the hardenability and abrasion resistance of steel. As MLC ferromanganese adds a lower amount of carbon in the steel among the two available grades, this segment is slowly gaining impetus in the global market.

By Application

Steel Manufacturing to be the Largest Segment Backed by High Demand from Automotive Industry

Based on the application, the manganese alloy market trends are segmented into steel manufacturing, welding accessories, foundry, and others. According to Ferroglobe, a key company operating in the market, more than 90% of the manganese ore mined worldwide is utilized in the production of steels in the form of alloys. With the production of steel gaining traction owing to the amplified demand from construction and automotive industries, the demand for these products is also expected to grow considerably from the steel making application.

On the other hand, welding is a necessary operation carried out extensively to join metal parts to form valuable articles starting from household products such as furniture and cupboards to manufacturing reactors and heavy industrial machinery. Welding accessories such as rods contain a small amount of manganese alloy. The addition of such alloys helps in maintaining the physical and chemical properties of these rods by reducing the carbon content. Therefore, with the increasing usage of welding processes for adjoining metal parts, the demand for these alloys is also growing in the global market.

REGIONAL INSIGHTS

The manganese alloy market size in Asia Pacific stood at USD 18,084.9 million in 2019. The growth is attributed to the rising adoption of high-carbon ferromanganese in the steel industry. In addition to this, the increasing production activity of steel in China will also fuel the demand in this region. 

The rapid growth in the automobile industry has surged the demand for steel in Europe. This growth is attributable to the rising advancements in cars and trucks in order to make them lightweight. North America is anticipated to exhibit significant growth, owing to the adoption of silicomanganese in welding accessories. Moreover, rapid growth in the construction industry due to the increasing demand for residential buildings will raise the need for steel.

Further, the increasing utilization of steel for setting up petrochemical plants will boost product consumption in Latin America. The growth in this region is further attributed to the rising use of high & low carbon ferromanganese in the manufacturing of foundries. Also, the surging demand for steel for infrastructure development in Brazil is anticipated to show a positive impact on the market during the forthcoming years. The Middle East & Africa is expected to register moderate growth.

KEY INDUSTRY PLAYERS

Leading Companies Focus on Partnerships & Capacity Expansion to Develop Distribution Networks

Acquisition and expansion are important strategies used by leading companies to maintain their positions in the market. Eramet is one of the most prominent companies operating in the market. The company is involved in mining and metallurgical activities and provides manganese alloys worldwide. It also offers various products such as nickel alloys and superalloys, non-ferrous metals and its derivatives, and high-performance special steels.

LIST OF KEY PLAYERS PROFILED IN THIS REPORT:

• Eramet (France)


• FerroGlobe (United Kingdom)


• Maithan Alloys Ltd. (India)


• Nava Bharat (India)


• ROHIT FERRO-TECH LIMITED (India)


• Vale (Brazil)


• OM Holdings Ltd. (Singapore)


• Hickman, Williams & Company (United States)


• Marubeni Tetsugen Co., Ltd. (Japan)


• Guangxi Jinmeng Manganese Industry Co., Ltd. (China)


• Citic Dameng Mining Industries Limited (China)


• Inner Mongolia Yao Kui Special Ferroalloy Co. Ltd. (China)


• Gulf Manganese (Australia)


• Tata Steel (India)


• Transalloys (south Africa)


• Simpac (South Korea)


• MOIL (India)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• June 2018 – Maithan Alloy, a leading manufacturer and exporter of value-added manganese alloys completed the acquisition of Anjaney Minerals and Salanpur Sinters. Salanpur Sinters is involved in the casting of metals while Anjaney Minerals is involved in the mining of iron ores. This acquisition would help Maithan Alloys in steel production and expand its product offering.


• February 2018: Ferroglobe PLC completed the acquisition of Glencore's European manganese plants in France and Norway. This acquisition helped Ferroglobe to become the largest producers with over half a million tons of sales of manganese alloys and to grow its existing platform while providing significant advantages to its customers.

REPORT COVERAGE

The manganese alloy market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, and applications. Also, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market growth over recent years.

Report Scope & Segmentation