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Ferrochrome Market Projected to Reach USD 30.67 Billion by 2031, Driven by Surging Stainless Steel Demand

According to SNS Insider, the Ferrochrome Market size was valued at USD 18.61 billion in 2023 and is projected to reach USD 30.67 billion by 2031, exhibiting a CAGR of 6.4% over the forecast period (2024-2031).

Stainless Steel Boom Fuels Ferrochrome Demand

The primary factor for the ferrochrome market’s expansion is the relentless demand for stainless steel across a spectrum of industries. Stainless steel, renowned for its corrosion resistance, strength, and aesthetic appeal, finds indispensable applications in automotive manufacturing, construction, and countless other sectors. This surge in stainless steel production directly translates to a corresponding increase in ferrochrome consumption.

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Some of the Key Players Included are:

  • Eurasian Resources Group
  • Merafe Resources Ltd.
  • Hernic Ferrochrome Ltd
  • TATA Steel
  • International Ferro Metals Ltd.
  • Samancor Chrome Ltd.
  • Ferro Alloys Co. Ltd.
  • Shanxi Jiang County Minmetal Co Ltd.
  • Daido Steel Co. Ltd
  • Glencore

Rising foreign investments and manufacturing activities are fueling the demand for stainless steel, creating abundant opportunities for growth in the ferrochrome market. This foreign investment is revitalizing manufacturing sectors such as construction, heavy equipment, consumer goods, and automotive. Furthermore, the booming automotive industry drives the consumption of stainless steel and, by extension, ferrochrome. Additionally, the construction industry’s escalating demand for stainless steel, driven by the proliferation of commercial and residential buildings, infrastructural projects, and water management solutions, further propels the ferrochrome market.

However, recent trends indicate a shift towards carbon fiber in automotive applications due to its superior impact absorption and safety benefits. Additionally, the electricity-intensive nature of ferrochrome production poses an ongoing challenge for the market.

Recent Developments

September 2023: Indian Metals and Ferro Alloys Ltd. announced the expansion of its existing ore mining capacity and a new greenfield smelting project in Kalinganagar, Odisha, responding to rising domestic stainless steel demand.

October 2022: Oman Chrome Company strategically invested USD 1.3 million in a low-carbon ferrochrome plant, expanding its value-added chrome ore projects and increasing profitability.

September 2022: SAL STEEL LTD. signed a three-year supply agreement with AIA Engineering, solidifying a reliable source of ferrochrome for the latter’s high chrome mill internals manufacturing.

Segment Analysis

By Type: The high carbon ferrochrome (HC FeCr) segment dominates the market, accounting for a revenue share of 90% in 2023. This dominance is attributed to its lower cost and abundant reserves compared to other types. HC FeCr is widely used by stainless steel manufacturers.

By Application: The stainless steel segment holds the largest revenue share (80% in 2023) due to the essential role of ferrochrome in reducing oxidation and enhancing the aesthetic appeal of stainless steel. As of 2022, there are no viable substitutes for ferrochrome in these applications.

By Type

  • High Carbon
  • Medium Carbon
  • Low Carbon

By Application

  • Stainless Steel
  • Cast Iron
  • Powder Metallurgy
  • Others

Impact of Russia-Ukraine War

The ongoing Russia-Ukraine conflict has inevitably impacted the ferrochrome market. Russia’s status as a top ferrochrome exporter has led to supply chain disruptions and price volatility due to sanctions and the war’s economic repercussions. As a result, manufacturers are actively seeking alternative sourcing strategies, potentially altering trade dynamics permanently.

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The Asia Pacific region dominates the global ferrochrome market, owing to its substantial stainless steel output –  especially in China.

Asia Pacific reigns supreme, capturing a staggering 60% of the global market share in 2023. This dominance is primarily driven by the region’s colossal stainless steel production capacity. China, the undisputed leader in this domain, witnessed a remarkable 1.64% year-on-year increase in its stainless steel output, surpassing a staggering 30.6 million tons in 2021.  Furthermore, China’s apparent consumption of stainless steel also experienced steady growth, reaching approximately 26.1 million tons (China Daily).  India, another Asian powerhouse, is rapidly emerging as a lucrative market for ferrochrome, fueled by its burgeoning stainless steel production.

Key Takeaways:

  • The increasing demand for stainless steel across various sectors, particularly automotive and construction, serves as a primary growth driver.
  • The report identifies lucrative investment opportunities within the ferrochrome market. The burgeoning stainless steel industry across diverse end-use applications presents a compelling scenario for investors to capitalize on.
  • The report highlights the promising growth potential of Europe, driven by its robust automotive and aerospace sectors, alongside government initiatives to bolster domestic steel production.
  • The report acknowledges the challenges confronting the market, such as the potential substitution of stainless steel with carbon fiber and the environmental concerns associated with high energy consumption during production.
Ferrochrome Market
Ferrochrome Market

Table of Contents – Major Key Points

  1. Introduction
  2. Research Methodology
  3. Market Dynamics
  4. Impact Analysis
    • COVID-19 Impact Analysis
    • Impact of Ukraine- Russia war
    • Impact of ongoing Recession
  5. Value Chain Analysis
  6. Porter’s 5 Forces Model
  7. PEST Analysis
  8. Ferrochrome Market Segmentation, By Type
  9. Ferrochrome Market Segmentation, By Application
  10. Regional Analysis
  11. Company Profiles
  12. Competitive Landscape
  13. Use Case and Best Practices
  14. Conclusion

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About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company’s aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.