Ferroalloy Market Size

Ferroalloy Market Size

Ferroalloy Market size was estimated over USD 45 billion in 2017 and the industry will grow by a CAGR of more than 5.5% up to 2025.

Rising demand for steels in end user industries such as construction, shipbuilding, automotive and several other sectors is one of the major drivers for ferroalloy market. The product has main applications in manufacturing variety of steels such as stainless steel, alloy steel, carbon steel, etc. Presence of iron ore in abundance across the globe along with intensifying demand for various types of steel grades owing to lack of feasible substitutes will give an up thrust to ferroalloy market in near future. Global crude steel production was about 1.6 billion tons in 2017, and showed a growth rate of around 5.3% in comparison to last year. The emerging nations such as China and India hold significant shares in this as the prime demand centers for steel. Some of the major automobile manufacturers are present in these countries catering to the increasing demand from the local customers. Expanding population along with improving standard of living gives boost to construction sector as well. Recent initiatives taken by governments in Asia Pacific region to boost manufacturing sector will also catapult ferroalloy demand over forecast time period.

High energy consumption for producing ferroalloys along with monitoring required to maintain the product quality increases overall cost of production. Also, there are many stringent environmental regulations, and industry standards mandated by various regulatory bodies for the iron and steel production industries. These factors, altogether, will hinder the ferroalloy market growth in coming years.