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The ferrochrome market size is forecast to increase by USD 7.59 billion, at a CAGR of 5.94% between 2023 and 2028.
The market growth depends on several factors such as the increasing demand for stainless steel and other alloy from developing countries, the expansion of the mining industry, and the health hazards and environmental impacts associated with chromite mining.
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Ferrochrome is an alloy of chromium and iron and contains 50%-70% of chromium by weight. This is mainly produced by the carbothermic reduction of chromite in electric SAF. The furnace feed consists of chromite ore (pellets, briquettes, and lumpy ore), reductants (coke, anthracite, coal, and char), and fluxes (lime, quartzite, and dolomite).
The charge chrome and high carbon segment is estimated to witness significant development during the forecast period. Charge chrome and high carbon ferrochrome offer enhanced hardenability, temperature stability, and corrosion resistance of stainless steel. In addition, the widespread availability of these grades of charge chrome and high carbon is expected to increase its market penetration globally.
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The charge chrome and high carbon segment was the largest segment and was valued at USD 14.88 billion in 2018. This is mainly utilized for the production of stainless steel. For instance, in 2020, 80% of global charge chrome was used for production. In addition, the increase in the use of charge chrome and high carbon ferrochrome for production, owing to the increasing demand for stainless steel from sectors such as automotive and construction will drive the charge chrome and high carbon segment, which in turn is expected to drive the global market during the forecast period.
Based on the end-user, the market has been segmented into stainless steel, carbon, and other alloy and others. The stainless steel segment will account for the largest share of this segment. The use of chromite to produce stainless steel fuels the market. In addition, the growing use of chromium-grade and chromium manganese-grade stainless steel in the construction, transportation industries, and industrial applications is expected to positively impact the market. Furthermore, the use of these materials in pre-engineered buildings for the construction of roof and wall systems is expected to drive this segment which in turn drives the market during the forecast period.
APAC is estimated to contribute 70% to the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
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The growing demand for this from China, Japan, South Korea, India, and Malaysia is expected to fuel the market. In addition, the use of this to produce stainless steel and engineering and alloy is expected to augment market. For instance, APAC accounts for more than 70% of global stainless-steel production. In addition, China, Japan, India, and South Korea are the major producers of this material in APAC. Moreover, the increase in demand for this material from the construction, transportation, and metallurgical industries in APAC will drive the regional market. In addition, the demand is high in the construction industry in APAC, led by an increase in infrastructure projects and construction activities. Furthermore, India is also one of the leading producers and consumers of this in APAC. Hence, such factors are driving the market in APAC during the forecast period.
The increasing demand for ferrochrome from developing countries is notably driving market growth. Factors such as the use of this for the production of stainless steel and other alloys in developing countries are expected to drive the market. Numerous vendors of this are also shifting their manufacturing sites to India, South Africa, China, and Zimbabwe. The availability of raw materials, low labor, and transportation costs, and less stringent government regulations and policies in these countries are expected to augment market growth. The growing population, disposable income, and purchasing power in developing countries of APAC and South America are prompting higher investment in the construction industry. The growing use of this product in the construction industry, owing to its weldability, is expected to augment market growth. Hence, such factors are driving the market during the forecast period.
The expansion of the mining industry is an emerging trend in the market. The rise in infrastructure development is driving the metal and mining industry, especially in developing nations such as India. For instance, in May 2021, iron ore exports stood at USD 574.56 million compared with USD 457.05 million in May 2020. Additionally, there has been a development of new ores in the country. For instance, in February 2021, two new iron ore mines were inaugurated in Odisha, which is expected to have a production capacity of 275 million tonnes. These mines will bring USD 679.28 million in annual revenue for the state and employment opportunities for locals. Furthermore, the Government of India has also been implementing policies to support the mining industry in the country. Hence, such factors are driving the market growth during the forecast period.
Health hazards and environmental impacts associated with chromite mining is hindering the market growth. Chromite is the main raw material used in manufacturing. In addition, the mining of chromite pollutes water as well as air and degrades the local landscape. Moreover, the high consumption of water during chromite production is also expected to hinder the chromite market. In addition, high water consumption in chromite production for increases environmental issues, creates sustainability challenges, and may result in increased operational costs, negatively affecting the growth of the global market. Furthermore, the governments of the US, China, South Africa, and India have raised concerns regarding the negative impacts of chromite mining activities. Hence, such factors are hindering the market growth during the forecast period.
Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and result in market growth analysis.
Afarak Group SE: The company offers low carbon and ultra low carbon ferrochrome for stainless steel production.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
African Rainbow Minerals Ltd., ArcelorMittal, Balasore Alloys Ltd., EHUI METALLURGY GROUP, Eurasian Resources Group., Ferbasa, Glencore Plc, Henan Star Metallurgy Material Co. Ltd., INDIAN METALS AND FERRO ALLOYS LTD., Merafe Resources Ltd., Metallic Ferro Alloys LLP, Mintal Group Cleantech Development Co.Ltd, Mitsubishi Corp., Outokumpu Oyj, Samancor Chrome, Tata Steel Ltd., Vedanta Ltd, Visa Steel Ltd., and YILDIRIM Group Of Companies
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market and forecast growth strategies.
Global Market Customer Landscape
The market is influenced by various factors, including the International Stainless Steel Forum's insights, melt shop production and ongoing manufacturing activities. Foreign investments play a significant role in shaping the market dynamics. According to the International Monetary Fund (IMF), the market faces challenges in terms of being an electrical energy-intensive process, with power consumption being a crucial aspect. Carbothermic smelting reduction and submerged electric arc furnaces (SAF) are integral processes in the industry.
Moreover, the revenue share is influenced by factors such as substitutes and other segments, including carbon low alloy, high-strength, and alloy steels. The market also caters to the needs of the building construction industry. Additionally, the market is impacted by the production and consumption of high carbon ferrochrome (HC FeCr), low carbon ferrochrome (LC FeCr), and ferrochrome (FeCr) with varying FeCr content, crucial for the industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.94% |
Market Growth 2024-2028 |
USD 7.59 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.85 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 70% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Afarak Group SE, African Rainbow Minerals Ltd., ArcelorMittal, Balasore Alloys Ltd., EHUI METALLURGY GROUP, Eurasian Resources Group., Ferbasa, Glencore Plc, Henan Star Metallurgy Material Co. Ltd., INDIAN METALS AND FERRO ALLOYS LTD., Merafe Resources Ltd., Metallic Ferro Alloys LLP, Mintal Group Cleantech Development Co.Ltd, Mitsubishi Corp., Outokumpu Oyj, Samancor Chrome, Tata Steel Ltd., Vedanta Ltd, Visa Steel Ltd., and YILDIRIM Group Of Companies |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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