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The global ferrochrome market size was valued at USD 16.10 billion in 2022 and is projected to grow from USD 16.92 billion in 2023 to USD 24.03 billion by 2030, exhibiting a CAGR of 5.1% during the forecast period.
Ferrochrome (FeCr) is a type of ferroalloy with high manganese content. It is an alloy between iron and chromium, usually comprising 50% to 70% chromium, and is used in the production of castings, stainless steel, and special steel. It gives strength to steel and is used to produce high-voltage steel. It is further added to stainless steel to improve its appearance and provide corrosion resistance. The minimum FeCr content in stainless steel is 10% while the average content is 18%.
The market is gradually consolidating, with some major manufacturers leading FeCr production globally. Additionally, the increasing product demand for ferrochrome from developing countries significantly drives market growth. Moreover, the increase in the production of stainless steel across the world for various end-use industries such as automotive and construction is a significant driver for market growth. Furthermore, the economics of stainless steel production plays an important role in defining the demand for the product. Such factors drive the global market throughout the forecast period.
Supply Chain Disruptions Owing to Lockdown Restrictions Hindered Market Growth
The COVID-19 pandemic since the last quarter of 2019 resulted in several countries, including Japan, the U.S., India, China, Germany, Italy, and Canada, announcing lockdowns, thereby limiting the flow of resources and products. Companies in the industry have ramped up production to meet the growing demand for stainless steel solutions. The manufacturers have started their activities by first implementing the indicated preventative measures. Moreover, stainless steel is used in the automotive and construction industries. These industries were severely impacted during the pandemic due to supply chain disruptions, labor & raw material shortages, and stern government regulation. This reduced the consumption of stainless steel in such industries even further.
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Rising Foreign Investments and Manufacturing Activities to Boost Market Growth
Increasing foreign investments and manufacturing activities are key factors that will surge the demand for stainless steel and generate lucrative opportunities for market growth. Foreign investment will boost the growth of manufacturing industries such as construction, heavy equipment, consumer goods, and automotive. In addition, the rapid growth in the automotive industry will fuel the consumption of the product. Moreover, the growing number of commercial and residential buildings, increasing commissioning of infrastructural projects, and rising water leakage issues will boost stainless steel demand in the construction industry. This will further boost the ferrochrome market growth.
High Usage in the Stainless Steel Industry to Aid Market Expansion
Ferrochrome is added to stainless steel to improve its appearance and provide corrosion resistance. The stainless steel segment held the largest market share and is anticipated to dominate the global market during the forecast period. Chromium stainless steel and chromium manganese grade are usually used in the construction and transportation industries. In addition, increasing stainless steel consumption in the construction industry will serve as a major driving factor for the market to grow significantly. Stainless steel was not commonly utilized for building structural applications initially, owing to its expensive cost. However, technological advancements have made this steel more accessible and affordable over the last decade while improving corrosion resistance and longevity. Hence, the growing number of commercial and residential buildings, increasing commissioning of infrastructural projects, and rising water leakage issues will augment the stainless steel demand in the construction industry. Moreover, the increasing demand for stainless steel from the metallurgical, construction, transportation, and industries is likely to drive market growth in the coming years.
Availability of Substitutes to Hinder Market Augmentation
Carbon fiber has been replacing stainless steel in the automotive sector nowadays as it is able to absorb large amounts of impact energy and also helps to increase automobile safety. This will affect the market negatively. Additionally, it is used in automobiles to lower weight while providing enough strength to withstand the rigors of racing. Moreover, the large amount of electricity needed in ferrochrome production will also pose a challenge for businesses operating in this domain.
High Carbon Segment to Lead Owing to Increasing Use in Steel Industry
Based on product type, the market is segmented into high carbon, low carbon, and others.
The high carbon segment is anticipated to remain the largest segment during the forecast period owing to its availability and lower costs of larger reserves than other products. As a result, this high-carbon ferrochrome is mainly consumed by stainless steel manufacturers.
The low carbon segment is projected to register a significant growth rate during the forecast period as it is widely used in the production of structural steels, alloy steel, and tool steels. The main applications of the product are low alloy steels, carbon, and tool steels. Steel manufacturers usually use low-carbon FeCr in the final stages of manufacturing to add the exact amount of chromium without affecting the carbon content.
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Stainless Steel Segment to Dominate the Market due to High Adoption in Construction Industry
Based on application, the market is segmented into stainless steel, specialty steel, and others.
The stainless steel segment is expected to dominate during the forecast period due to increasing product consumption in the construction industry. Stainless steel was not usually utilized for structural construction reasons initially due to its expensive cost. However, technological advancements have made this steel more affordable and accessible over the last decade while improving corrosion resistance and longevity.
Moreover, adding chromium to steel can considerably improve the oxidation and corrosion of steel. Chromium is used as ferrochrome in various steels with special physicochemical properties. High-carbon FeCr is used as an alloying agent for tool steel, stamped steel, ball steel, and high speed steel to improve the hardenability of steel. Also, it increases the hardness and wear resistance of steel.
Asia Pacific Ferrochrome Market Size, 2022 (USD Billion)
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Asia Pacific held the largest ferrochrome market share in 2022, owing to increasing product demand from stainless steel manufacturers in China and India. Rising stainless steel production is boosting product demand, and thus driving market growth in this region. The demand for stainless steel is growing steadily due to increasing urbanization, which further complements the market growth.
In North America, the U.S. is a significantly larger market compared to Canada. Declining imports of stainless steel due to the ongoing trade war between China and the U.S. is anticipated to improve the production of stainless steel in the U.S. However, rising prices for stainless steel due to higher demand from domestic manufacturers can have a negative impact on demand, thus balancing production. This uncertainty is expected to affect the country's dynamics of the market.
In Europe, the market is anticipated to grow with a significant CAGR during the forecast period. The market growth in the region is owed to a rapid expansion of the automotive industry and increasing research & development activities. The advancement in the product will boost the consumption of stainless steel in the region. The region is a major manufacturer of automobiles. Stainless steel is largely used in the body frames, components, and parts of an automotive. Such factors are likely to increase demand for the product.
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Meanwhile, Latin America and the Middle East & Africa will register a moderate growth rate during the forecast period owing to the rising production of specialty and stainless steel in these regions.
Strategic Planning Adopted by Companies to Strengthen their Market Share
The global market is consolidated with key players operating in the industry being Tata Steel Mining Limited, Samancor Chrome, TNC KAZCHROME JSC, Ferro Alloys Corporation Ltd, and HERNIC.
Market participants are fiercely competing with international and regional players with extensive distribution networks, regulatory know-how, and suppliers. In addition, companies sign contracts, form acquisitions, and enter into strategic partnerships with other leaders to expand their existing markets.
An Infographic Representation of Ferrochrome Market
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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and applications. In addition, it offers insights into industry trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.
CAGR of 5.1% from 2023 to 2030
Value (USD Billion); Volume (Million Ton)
By Product Type, Application, and Region
By Product Type
Fortune Business Insights says that the global market size was USD 16.10 billion in 2022 and is expected to reach USD 24.03 billion by 2030.
In 2022, the Asia Pacific market size stood at USD 11.91 billion.
Registering a CAGR of 5.1%, the market will exhibit steady growth during the forecast period (2023-2030).
Stainless steel segment is expected to lead this market during the forecast period.
Rising demand from the stainless steel industry is anticipated to drive market growth.
Tata Steel Mining Limited, Samancor Chrome, TNC KAZCHROME JSC, Ferro Alloys Corporation Ltd, and HERNIC are a few major players in the market.
Asia Pacific dominated the market in terms of share in 2022.
Efficient product properties is expected to drive its adoption in the market and create new market opportunities.
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