Ferrosilicon Market - Share, Size & Industry Value

Ferrosilicon Market Size

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Study Period 2019 - 2029 Base Year For Estimation 2023 CAGR

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3.00 % Fastest Growing Market Asia Pacific Largest Market Asia Pacific Market Concentration Low

Major Players

*Disclaimer: Major Players sorted in no particular order

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Ferrosilicon Market Analysis

The market for ferrosilicon is expected to grow at a CAGR of less than 3% globally during the forecast period.

COVID-19 moderately impacted the global ferrosilicon market due to the raw materials shortage. However, rising semiconductor sectors across the globe have accelerated the consumption of ferrosilicon.

• Increasing applications for corrosion resistance and growing demand from steel production industries are driving market growth.
• Replacement by other substitutes factor is expected to hinder the market growth.
• Increasing demand from the construction and automotive industries is projected to offer new growth opportunities to industry growth during the forecast period.
• Asia-Pacific dominated the global market with the rising application of ferrosilicon in China and India, mainly in the metallurgy and semiconductor industry.

Ferrosilicon Market Trends

This section covers the major market trends shaping the FerroSilicon Market according to our research experts:

Growing Demand from Metallurgy Industry

• Ferrosilicon is an alloy used for steel and casting production applications. FerroSilicon finds its application in metallurgy, semiconductors, solar energy, and chemicals.
• Ferrosilicon includes a strong relationship with steel production industries. Because of its properties, ferrosilicon is used as a steel deoxidizer and an inoculant in the casting industries.
• The properties of ferrosilicon include corrosion and abrasion resistance, high specific gravity, high strength, high magnetism, hardness, and high-temperature resistance. More than 80% of ferrosilicon is consumed in producing iron and steel.
• Corrosion can reduce strength, decrease surface properties, and resistance to fluids. Overall, it decreases the mechanical and chemical properties of certain materials.
• The demand for corrosion resistance from the construction and automobile industries is growing. Bridges, structural support materials, and automotive bodies need to last long without any effect of corrosion. So, many companies are preferring ferrosilicon in construction and automobiles for better quality.
• In 2021, 961,100 road bridges were built in China, an increase of 48,300 from the previous year. China's road bridges have grown by about 46% during the last 12 years.
• Alloying ferrosilicon with other metals makes the compound useful in producing semiconductors. Semiconductors have a huge demand from the electronics industry. Rapid industrialization and growing demand for electronics have been increasing the use of ferrosilicon in various applications.
• In 2021, semiconductor unit sales reached a historic 1.15 trillion-unit shipments as a result of increases in fab utilization rates far above the normal 'full utilization' rate of 80 percent. Additionally, to meet the long-term chips demand, the global semiconductor industry made significant capital investments in 2022, investing more than USD 166 billion.
• According to the Semiconductor Industry Association (SIA), the global semiconductor industry sales was totaled USD 573.5 billion in 2022. China remained the largest market for semiconductors, with sales totaling USD 180.3 billion in 2022.
• Moreover, government policies and incentives in various countries are also providing benefits to improve the global semiconductor research and workforce ecosystem. In May 2021, South Korea unveiled the 'K-Semiconductor Belt' strategy aimed at building the world's largest semiconductor supply chain by 2030. Additionally, in September 2022, the Mexican federal government began to draft a new incentives package to attract semiconductor investment, particularly focused on assembly, testing, and packaging.
• Therefore, the growing demand for ferrosilicon for metallurgy purposes is likely to witness growth in the coming years.

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Asia-Pacific Region to Dominate the Market

• Asia-Pacific is expected to dominate the global market owing to the highly developed construction and continuous regional investments to advance the automobile and construction sectors through the years.
• The demand from the construction industry is increasing. According to a study by the Institution of Civil Engineers (ICE), the global construction industry is expected to reach USD 8 trillion by 2030, primarily driven by China, India, and the United States.
• Alloying steel with ferrosilicon includes various properties that enhance their demand in the automotive sector, such as thickness and quality.
• China includes the largest automobile manufacturing base of any other region, accounting for the demand for ferrosilicon in the Asia-Pacific region. According to the China Association of Automobile Manufacturers (CAAM), Chinese carmakers produced 27.02 million units in 2022, up by 3.4% year on year, while sales rose by 2.1% to 26.86 million units.
• Electric vehicle (EV) production and sales in China grew rapidly in 2022, breaking previous records in the year's final month. Sales of electric vehicles increased by 93.4% to 6.89 million units in 2022, a rise of 7.1 million units or a 96.9% year-on-year increase in production.
• Asia-Pacific is the largest producer of electronic components. In recent years, the semiconductors used in almost every electronic device increased the demand for ferrosilicon in producing semiconductors.
• Therefore, the factors above are expected to boost the consumption of ferrosilicon in the Asia Pacific region.

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Ferrosilicon Industry Overview

The global ferrosilicon market is fragmented, with many players competing. Some major companies are China Minmetals Corporation, Eurasian Resources Group, Ferroglobe, OM Holdings Ltd, and Mechel, among others (not in any particular order).

Ferrosilicon Market Leaders

1. China Minmetals Corporation

2. Eurasian Resources Group

3. Ferroglobe

4. Mechel

5. OM Holdings Ltd

*Disclaimer: Major Players sorted in no particular order

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Ferrosilicon Market News

• July 2022: Ferroglobe PLC entered a new phase in its silicon metal powder project for batteries and other advanced technologies, reaching a high purity production (up to 99.995%) in micrometer and sub-micrometer size.
• June 2022: Ferroglobe PLC announced a Memorandum of Understanding ('MOU') with REC Silicon. Under the MOU, Ferroglobe commits to leverage its asset platform in the United States to supply high-purity silicon metal to REC Silicon aimed at jointly establishing a low-carbon and fully traceable U.S.-based solar supply chain.

Ferrosilicon Market Report - Table of Contents

1. 1. INTRODUCTION

   1. 1.1 Study Assumptions

   2. 1.2 Scope of the Study

2. 2. RESEARCH METHODOLOGY

3. 3. EXECUTIVE SUMMARY

4. 4. MARKET DYNAMICS

   1. 4.1 Drivers

      1. 4.1.1 Increasing Applications for Corrosion Resistance

      2. 4.1.2 Growing Demand from Steel Production Industries

   2. 4.2 Restraints

      1. 4.2.1 Replacement by Other Substitutes

      2. 4.2.2 Other Restraints

   3. 4.3 Industry Value Chain Analysis

   4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Degree of Competition

5. 5. MARKET SEGMENTATION (Market Size in Volume)

   1. 5.1 Application

      1. 5.1.1 Metallurgy

      2. 5.1.2 Semiconductors

      3. 5.1.3 Photovoltaic Solar Energy

      4. 5.1.4 Chemical Processing

      5. 5.1.5 Other Applications

   2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

         1. 5.2.1.1 China

         2. 5.2.1.2 India

         3. 5.2.1.3 Japan

         4. 5.2.1.4 South Korea

         5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

         1. 5.2.2.1 United States

         2. 5.2.2.2 Canada

         3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

         1. 5.2.3.1 Germany

         2. 5.2.3.2 United Kingdom

         3. 5.2.3.3 France

         4. 5.2.3.4 Italy

         5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

         1. 5.2.4.1 Brazil

         2. 5.2.4.2 Argentina

         3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

         1. 5.2.5.1 Saudi Arabia

         2. 5.2.5.2 South Africa

         3. 5.2.5.3 Rest of Middle-East and Africa

6. 6. COMPETITIVE LANDSCAPE

   1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

   2. 6.2 Market Share (%)**/Ranking Analysis

   3. 6.3 Strategies Adopted by Leading Players

   4. 6.4 Company Profiles

      1. 6.4.1 China Minmetals Corporation

      2. 6.4.2 Eurasian Resources Group

      3. 6.4.3 Ferro Alloys Corporation Limited

      4. 6.4.4 Ferroglobe

      5. 6.4.5 Finnfjord

      6. 6.4.6 Mechel

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      7. 6.4.7 OM Holdings Ltd.

      8. 6.4.8 Shanghai Shenjia Ferroalloys Co., Ltd

      9. 6.4.9 SKP Group

      10. 6.4.10 Tashi Group

   5. *List Not Exhaustive

7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

   1. 7.1 Increasing Demand from Construction and Automotive Industries

   2. 7.2 Other Opportunities

**Subject to Availability

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Ferrosilicon Industry Segmentation

An industrial process for making ferrosilicon (FeSi) involves reducing sand or silica in the presence of iron at extremely high temperatures. The ferrosilicon market is segmented into application and geography. Based on application, the market is segmented into metallurgy, semiconductors, photovoltaic solar energy, chemical processing, and other applications. The report also covers the market sizes and forecasts for the ferrosilicon market in 15 countries across the major regions. The market sizing and forecasts have been done for each segment based on volume (Kilotons).

Application Metallurgy Semiconductors Photovoltaic Solar Energy Chemical Processing Other Applications Geography Asia-Pacific China India Japan South Korea Rest of Asia-Pacific North America United States Canada Mexico Europe Germany United Kingdom France Italy Rest of Europe South America Brazil Argentina Rest of South America Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa

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Ferrosilicon Market Research FAQs

What is the current FerroSilicon Market size?

The FerroSilicon Market is projected to register a CAGR of less than 3% during the forecast period (2024-2029)

Who are the key players in FerroSilicon Market?

China Minmetals Corporation , Eurasian Resources Group , Ferroglobe, Mechel and OM Holdings Ltd are the major companies operating in the FerroSilicon Market.

Which is the fastest growing region in FerroSilicon Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

Which region has the biggest share in FerroSilicon Market?

In 2024, the Asia Pacific accounts for the largest market share in FerroSilicon Market.

What years does this FerroSilicon Market cover?

The report covers the FerroSilicon Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the FerroSilicon Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Ferrosilicon Industry Report

Statistics for the 2024 Ferrosilicon market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ferrosilicon analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Ferrosilicon Market Outlook 2031

• The global ferrosilicon market was valued at US$ 11.3 Bn in 2021
• It is estimated to grow at a CAGR of 2.5% from 2022 to 2031
• The global ferrosilicon market is expected to reach a value of US$ 15.1 Bn by the end of 2031

Analysts’ Viewpoint on Ferrosilicon Market Scenario

Industries are seeking metallic addition agents that are used in iron and steel making in order to incorporate an alloying element into the molten material or refined steel. Ferrosilicon is used as master alloy in iron and steel production. The ferrosilicon market is estimated to grow at a sluggish CAGR of 2.5% during the forecast period primarily due to the environmental challenges in the transport of ferroalloys. Hence, companies should adopt special measures such as storage of ferroalloys in water-tight containers and isolation of machinery & equipment used for the handling of raw materials to minimize the emission of polluting particles in the environment. Steel is an important commodity in most end-use industries; therefore, manufacturers have been establishing stable revenue streams in the steel industry during the post-COVID-19 period.

Overview of Ferrosilicon Market

Ferrosilicon is generally of two types: atomized ferrosilicon and milled ferrosilicon. Ferrosilicon is used in various industries such as carbon & other alloy steel, stainless steel, electrical steel, cast iron, and magnesium.

Rise in demand for steel and metal alloys; and growth in automobile and construction industries are driving the ferrosilicon market. Numerous initiatives are being taken by governments to boost the usage of steel in different industries and reduce carbon footprint. The steel industry is the key downstream user of domestic ferrosilicon. Ferrosilicon is primarily used in steelmaking in steel mills. Corrosion- and abrasion-resistance, high specific gravity, high strength, high magnetism & hardness, and high temperature-resistance are benefits offered by ferrosilicon. Therefore, several companies are investing in the production of ferrosilicon.

Increase in environmental issues is prompting governments of several countries to focus on the use of ferrosilicon. Several international bodies are providing funds to developing countries in order to increase the usage of ferrosilicon.

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High Demand for Steel in Automotive, Construction, and Manufacturing Industries to Drive Market

Ferrosilicon (FeSi) is an alloy of iron and silicon with highly variable silicon content (between 10% and 90%). It is used as a so-called master alloy in steel production. It is added in small quantities in order to adjust the properties of the melt, the cooling process, and the finished product.

Steel is a highly versatile material. The basic constituent of steel is iron; however, the proportion of other elements lends each type of steel certain specific properties. Ferrosilicon provides increased resistance to corrosion and improves the hardness & tensile strength of steel. Demand for steel is high in various industries such as automotive, construction, and manufacturing. Usage of ferrosilicon in steel making improves the physical, chemical, and mechanical properties of steel. It also improves the quality of steel and its castings. Ferrosilicon products are important raw materials for steel and other metallurgical industries. They play a vital role in modern economic development. Steelmaking, foundry, and ferroalloy industries are prominent markets for ferrosilicon. These account for more than 90% of the total demand for ferrosilicon each year.

Electrical steel, often called silicon steel, contains a significant quantity of ferrosilicon and silicon to improve electrical qualities such as resistivity. Demand for ferrosilicon is estimated to rise, as the demand for electrical steel increases in the construction of motors, transformers, and other power generating devices. In electrical steel, ferrosilicon is used to manufacture magnetic cores for electric motors. This helps improve motor efficiency, lower battery capacity requirements, and extend range.

Increase in demand for renewable energy is another key driver of the global ferrosilicon market. Steel is crucial in the development of infrastructure for renewable energy generation such as solar, tidal, and wind energy. On the other hand, the usage of ferrosilicon is rising in the production of silicon steel for designing electromotors and transformer cores. Ferrosilicon and other silicon alloys are produced by reducing quartz, with coal and iron or other ores at very high temperatures.

Burgeoning Growth of Automobile and Construction Industries to Boost Ferrosilicon Market

Demand for corrosion-resistant materials is increasing in construction and automobile industries. Bridges, structural support materials, and automobile bodies must last for a long period without corroding. Therefore, ferrosilicon is used in buildings and automobiles owing to its beneficial properties.

The ferrosilicon market is also driven by the increase in construction activities in emerging economies across the globe owing to rapid urbanization and rise in per capita disposable income of citizens.

The automotive industry is expected to witness significant demand for steel in the near future. Automakers are constantly focusing on the development of lightweight steel that helps improve the overall fuel efficiency of vehicles. Silicon-aluminum alloys are replacing steel in the manufacture of chassis, engine blocks, and powertrain components to reduce the overall weight of vehicles. This is estimated to boost the demand for ferrosilicon.

High Demand for Atomized Ferrosilicon due to its Beneficial Properties

In terms of type, the global ferrosilicon market has been segregated into atomized ferrosilicon and milled ferrosilicon. The atomized ferrosilicon segment held 77.4% of the global market in 2021. It is estimated to dominate the market during the forecast period.

Atomized ferrosilicon is a high-tech product. It has low oxygen content, efficient spreading properties, and excellent fluidity features such as viscosity and surface tension. It also has spherical particles. Atomized ferrosilicon powder cannot be matched with or replaced by common ferrosilicon. Spherical particle confirms the proper blending of the powder with welding flux. The atomization process ensures that less or no hydrogen gas is generated. Hence, manufacturers are increasing the production of powdered ferrosilicon.

Increase in Usage of Alloy Steel and Cast Iron in Automobile and Construction Industries to Augment Market

Based on end-use, the global ferrosilicon market has been classified into carbon & other alloy steel, stainless steel, electrical steel, cast iron, magnesium, and others. The carbon & other alloy steel segment dominated the global ferrosilicon market with 46.7% share in 2021. Demand for ferrosilicon is surging due to the increase in the usage of alloy steel and cast iron in automobile and construction industries. Thus, key vendors in ferrosilicon market are bullish on increasing the distribution & sale of silicon alloy and iron alloy products in automobile and construction industries.

Regional Outlook of Global Ferrosilicon Market

Asia Pacific accounted for prominent share of 74.7% of the global market in 2021. The atomized ferrosilicon segment held 77.7% share of the market in the region in 2021. China constitutes almost one-third share of the ferrosilicon market in Asia Pacific. This can be ascribed to the burgeoning growth in the construction industry and continuous investments in automobile and construction sectors in the region.

North America and Europe are also key markets for ferrosilicon. These regions held 6.5% and 11.5% share of the global market, respectively, in 2021. Thus, opportunities in the ferrosilicon market are being recognized by manufacturers who are increasing their output capacities to produce ferrosilicon, which is extensively used for heavy media separation and atomization.

Middle East & Africa is a comparatively larger market for ferrosilicon than Latin America. The ferrosilicon market in Middle East & Africa is estimated to grow during the forecast period due to the increase in production of steel in the region.

Analysis of Key Players in Ferrosilicon Market

The global ferrosilicon market comprises several small and large-scale manufacturers and suppliers that control the majority of the share. Most of the firms are adopting new technologies and strategies with comprehensive research & development activities, primarily to develop and prioritize sustainable metal addition agents. Diversification of product portfolios and mergers & acquisitions are important strategies adopted by key players. Eurasian Resources Group, Ferroglobe OM Holdings Limited, SC Feral Srl, DMS Powders (Pty) Ltd, Mechel, FINNFJORD AS, Elkem ASA are the prominent entities operating in the market.

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Key Developments in Global Ferrosilicon Market

• In February 2020, Elkem signed a letter of intent with Vow Industry, ASA’s owned subsidiary, with the aim of reducing fossil CO2 emissions during the production of silicon and ferrosilicon products. Elkem and Vow ASA are expected to join competence and technology solutions to develop and manufacture ferrosilicon and other products for Elkem’s production processes. Ferrosilicon would be produced at Vow Industries’ planned plant at Follum, outside Oslo, in Norway.
• In January 2021, the Aksu ferroalloy plant of JSC TNC Kazchrome, owned by Eurasian Resources Group, a leading diversified natural resources group, passed the milestone of lifetime production of 35 Mt in ferroalloy smelting. Kazchrome, which produces chrome, silicon, and manganese alloys, currently accounts for more than 60% of total ferroalloy output in Kazakhstan.

Each of these players has been profiled in the ferrosilicon market report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments.

Global Ferrosilicon Market Snapshot

Attribute

Detail

Market Size Value in 2021

US$ 11.3 Bn

Market Forecast Value in 2031

US$ 15.1 Bn

Growth Rate

(CAGR)

2.5%

Forecast Period

2022–2031

Historical Data Available for

2020

Quantitative Units

US$ Bn for Value & Kilo Tons  for Volume

Market Analysis

It includes cross segment analysis at global as well as regional level. Furthermore, qualitative analysis includes drivers, restraints, opportunities, key trends, Porter’s Five Forces analysis, value chain analysis, and key trend analysis.

Competition Landscape

• Market share analysis by company (2021)
• Company profiles section includes overview, product portfolio, sales footprint, key subsidiaries or distributors, strategy & recent developments, and key financials

Format

Electronic (PDF) + Excel

Market Segmentation

• Type
  • Atomized Ferrosilicon
  • Milled Ferrosilicon
• End-use
  • Carbon & Other Alloy Steel
  • Stainless Steel
  • Electrical Steel
  • Cast Iron
  • Magnesium
  • Others

Regions Covered

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa

Countries Covered

• U.S.
• Canada
• Germany
• U.K.
• France
• Spain
• Italy
• Russia & CIS
• Japan
• China
• India
• ASEAN
• Brazil
• Mexico
• GCC
• South Africa

Companies Profiled

• Eurasian Resources Group
• Ferroglobe OM Holdings Limited
• SC Feral Srl, DMS Powders (Pty) Ltd
• Mechel
• FINNFJORD AS
• Elkem ASA,
• Maithan Alloys Ltd
• SKP Group
• JAYESH Group
• Singhania International Limited
• Asian Steel Industries
• Hindustan Alloys Private Limited.

Customization Scope

Available upon request

Pricing

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Frequently Asked Questions

How big was the ferrosilicon market in 2021?

The market stood at US$ 11.3 Bn in 2021

How is the market expected to grow by 2031?

The market is expected to grow at a CAGR of 2.5% from 2022 to 2031

What are the key drivers of the ferrosilicon market?

Increase in demand for production of steel and metal alloys; and expansion of automobile and construction industries

Which was the largest segment of the ferrosilicon market in 2021?

Atomized ferrosilicon was the largest type segment that held 77.4% share in 2021

Which region was the most lucrative in the ferrosilicon market in 2021?

Asia Pacific was the most lucrative region of the ferrosilicon market in 2021

Who are the prominent players in the ferrosilicon market?

Eurasian Resources Group, Ferroglobe OM Holdings Limited, SC Feral Srl, DMS Powders (Pty) Ltd, Mechel, FINNFJORD AS, and Elkem ASA

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