Enjoy complimentary customisation on priority with our Enterprise License!
The ferrochrome market size is forecast to increase by USD 7.59 billion, at a CAGR of 5.94% between 2023 and 2028. Market growth hinges on various factors, including rising demand for stainless steel and alloys in developing nations, driven by infrastructural development and industrialization. Additionally, the mining industry's expansion, particularly in chromite extraction, contributes significantly to market dynamics. However, this growth comes with health hazards and environmental concerns linked to chromite mining operations. Addressing these issues through sustainable practices and regulatory measures is crucial for long-term market sustainability. Despite challenges, the demand remains robust, underpinned by their versatile applications across various sectors. Balancing growth with environmental responsibility is paramount for stakeholders to ensure the market's continued prosperity while mitigating adverse impacts on health and the environment.
To learn more about this report, Request Free Sample
The charge chrome and high carbon segment is estimated to witness significant development during the forecast period. The market is dominated by the iron-based alloy, FeCr, which is primarily used in the production of castings for stainless steel and special steels, including high-voltage steel, FeCr content being a crucial factor. The automotive industry and construction sector are significant consumers of chromium stainless steel, with the former requiring high-grade chromium manganese for improved automobile safety and the latter for infrastructure projects, addressing water leakage issues.
Get a glance at the market contribution of various segments View the PDF Sample
The charge chrome and high carbon segment was the largest segment and was valued at USD 14.88 billion in 2018. Major FeCr producers include South Africa for charge chrome (45-57% Cr, 4-7% carbon, and 2.5-7% silicon), Brazil for high carbon ferrochrome (65-72% Cr), and Finland for charge chrome with varying carbon and silicon content. Kazakhstan is a significant producer of high carbon ferrochrome. The FeCr market's revenue share is driven by the increasing demand for stainless in consumer goods, urbanization, and the production of alloys steel, tool steels, and high-tension steel for various industries, including electricity and carbon fiber. Thus, such factors are 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 demand for stainless steel, primarily used in construction, transportation, and industrial applications, is driven by rapid industrialization and population explosion. Brick manufacturing, pavement construction, and the concrete industry's reliance on chromium-grade and chromium manganese-grade contribute to market expansion. Infrastructure development, including roads and heavy machinery, also boosts demand. The automotive sector's increasing use in APAC further fuels growth. Technological innovations and raw material shortages pose challenges, while shipping delays and pricing accessibility are critical factors influencing market dynamics.
APAC is estimated to contribute 70% to the global market during the forecast period. Technavio's analysts have provided extensive insight into market forecasting, detailing the regional market growth and trends and drivers influencing the market's trajectory throughout the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
The market is experiencing significant growth due to the increasing demand from key consumers in Asia Pacific, including China, Japan, South Korea, India, and Malaysia. This demand is driven by the use of ferrochrome in producing engineering alloys, stainless steel, and alloy steel for various industries such as construction, transportation, and metallurgical sectors. With rapid industrialization and population explosion in APAC, the need for infrastructure development and construction projects is on the rise.
Further, brick manufacturing, pavement construction, and concrete industries require large quantities of cement, roads, and heavy machinery, all of which necessitate the use. Technological innovations in the automotive industry and the production of alloy steel are also contributing factors. However, raw material shortages and shipping delays can impact pricing and accessibility, potentially hindering market growth. Hence, such factors are driving the market in APAC during the forecast period.
In both the construction and transportation industries, stainless steel consumption plays a pivotal role, especially in the construction of commercial and residential buildings. The demand for Ferro alloy, particularly low carbon ferro manganese, is significant to meet the quality standards set by stainless steel manufacturers. This alloy serves as a crucial ingredient in the production of stainless steel, ensuring durability and resistance to corrosion in various applications.
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 increasing demand for stainless steel and other alloy steel from developing countries is notably driving market growth. The market is experiencing significant growth in developing economies, including China, India, South Africa, Brazil, and Indonesia. This expansion is driven by the increased use of Ferrochrome (FeCr) in the production and special steels, such as castings, high-voltage steel, and tool steels, for industries like automotive, construction, and consumer goods. The availability of raw materials, including Chromite ore, and lower labor and transportation costs in these countries are attracting numerous Ferroalloy companies.
Moreover, the growing population and disposable income in APAC and South America are fueling investment in sectors like automotive and infrastructure, leading to increased demand for chromium stainless steel and alloy steels. Urbanization and the need for corrosion resistance in various applications, including water leakage issues and carbon fiber, are further boosting the market's revenue share. The Ferrochrome industry's focus on sustainability, with initiatives like Zero Waste, is also contributing to its growth. Hence, such factors are driving the market during the forecast period.
Digitalization and Industry 4.0 integration into the market is an emerging trend in the market. The integration of digital technology is revolutionizing the market, particularly in the production of iron and chromium-based alloys. Advanced technologies like sensors, automation, and data analytics are used to enhance efficiency in ferrochrome production processes. In smelting furnaces, automated systems and smart sensors monitor real-time parameters, ensuring optimal temperature and chemical composition. These technologies enable precise data collection for predictive maintenance, minimizing downtime and increasing productivity. Data analytics plays a pivotal role in optimizing ferrochrome production and informing strategic decisions. Machine learning algorithms analyze vast amounts of data to identify trends and potential development opportunities in the ferrochrome industry.
Moreover, urbanization drives demand for corrosion-resistant ferrochrome alloys in sectors like water leakage issues, carbon fiber, and structural steels. The market's revenue share comes from the sale of ferro alloys, including manganese, high tension steel, tool steels, and high carbon ferrochrome. Ferrochromium (FeCr) is a crucial component in the production of stainless steel, which is essential in various industries, including the automotive industry for automotive safety, the construction industry for infrastructural projects, and the electrical energy sector for high-voltage steel applications. Such factors are expected to drive the market growth during the forecast period.
Stringent regulations and policies regarding ferroalloy processing waste are hindering the market growth. The market, which involves the production of iron-chromium alloys from chromite ore, is subject to regulatory constraints from the Environmental Protection Agency (EPA) and REACH regulations. These rules, which focus on the proper disposal of ferrochrome production waste, may increase expenses, decrease production efficiency, and potentially reduce market competitiveness. In the US, the EPA's Code of Federal Regulations 40 CFR Part 424 sets guidelines and standards for direct and indirect dischargers in ferroalloy manufacturing, incorporated into the National Pollutant Discharge Elimination System (NPDES). The production of ferrochrome, a key component in stainless steel, castings, and special steels impacts various sectors such as automotive, construction, consumer goods, and infrastructure.
Moreover, water leakage issues in these industries may lead to the use of ferrochrome in water treatment and carbon fiber production. The automotive sector, in particular, relies on ferrochrome for automobile safety and electrical energy applications. Urbanization and infrastructure projects further boost consumption, driving the demand for ferrochrome. Despite these opportunities, regulatory compliance and energy costs remain challenges for ferrochrome manufacturers. Despite these opportunities, regulatory compliance and energy costs remain challenges for ferrochrome manufacturers. 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.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 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 a significant segment of the chromium industry, with key players such as Ferro-Chromium and Ferro Alloys Corporation (FEC), Chromium and Ferro-Alloys Limited (CFAL), and others contributing to its growth. The demand for Ferrochrome is driven by its extensive use in the production of stainless steel and other alloys. The chromium content in Ferrochrome ranges from 48-70%, making it an essential raw material in the steel industry. The production of Ferrochrome involves the reduction of chromite ore in a furnace using coal or coke as a reducing agent. The process results in the formation of Ferrochrome, which is then cooled and crushed into small pieces for further use.
Additionally, the market for Ferrochrome is influenced by various factors, including the price of raw materials, demand from the industry, and government regulations. The future of the market looks promising, with increasing demand from emerging economies and the growing use of stainless steel in various industries. However, the market is also subject to challenges such as fluctuating raw material prices and increasing production costs. Despite these challenges, the market is expected to grow steadily in the coming years.
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
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.