Ferrochrome (FeCr) Market Size, Share & Industry Analysis, By Product Type (High Carbon, Low Carbon, and Others), By Application (Stainless Steel, Specialty Steel, and Others), and Regional Forecast, 2024-2032

The global ferrochrome (FeCr) market size was valued at USD 16.92 billion in 2023 and is projected to grow from USD 17.81 billion in 2024 to USD 26.55 billion by 2032, exhibiting a CAGR of 5.1% during the forecast period. Asia Pacific dominated the ferrochrome market with a market share of 74.17% in 2023. Moreover, the ferrochrome market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 0.82 billion by 2032, driven by the increase in stainless steel production is driving the demand for ferrochrome, thereby boosting the market size growth.

Ferrochrome (FeCr) is a type of ferroalloy with high manganese content. It is an alloy between iron and chromium, usually comprising 50% to 70% chromium and is used in the production of castings, stainless steel, and special steel. It gives strength to steel and is used to produce high-voltage steel. It is further added to stainless steel to improve its appearance and provide corrosion resistance. The minimum FeCr content in stainless steel is 10% while the average content is 18%.

The market is gradually consolidating, with some major manufacturers leading FeCr production globally. Additionally, the increasing product demand for ferrochrome from developing countries significantly drives market growth. Moreover, the increase in production of stainless steel across the world for various end-use industries such as automotive and construction is a significant driver for market growth. Furthermore, the economics of stainless steel production plays an important role in defining the demand for the product. Such factors drive the global market throughout the forecast period.

The COVID-19 pandemic since the last quarter of 2019 resulted in several countries, including Japan, the U.S., India, China, Germany, Italy, and Canada, announcing lockdowns, thereby limiting the flow of resources and products. Stainless steel is used in automotive and construction industries. These industries were severely impacted during the pandemic due to supply chain disruptions, labor & raw material shortages, and stern government regulations. This reduced the consumption of stainless steel in such industries, further impacting the market. However, companies in the industry have ramped up production to meet the growing demand for stainless steel solutions since 2021. Manufacturers started their activities by first implementing the indicated preventative measures. Furthermore, the market has stabilized due to rising adoption of stainless steel.

Ferrochrome (FeCr) Market Trends

Rising Foreign Investments and Manufacturing Activities to Boost Market Growth

Increasing foreign investments and manufacturing activities are key factors that will surge the demand for stainless steel and generate lucrative opportunities for market growth. Foreign investment will boost the growth of manufacturing industries such as construction, heavy equipment, consumer goods, and automotive. In addition, the rapid growth in the automotive industry will fuel the consumption of the product. Moreover, the growing number of commercial and residential buildings, increasing commissioning of infrastructural projects, and rising water leakage issues will boost stainless steel demand in the construction industry. This will further boost the ferrochrome market growth.

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Ferrochrome (FeCr) Market Growth Factors

High Usage in the Stainless Steel Industry to Aid Market Expansion

Ferrochrome is added to stainless steel to improve its appearance and provide corrosion resistance. The stainless steel segment held the largest market share and is anticipated to dominate the global market during the forecast period.

Chromium stainless steel and chromium manganese grade are usually used in the construction and transportation industries. In addition, increasing stainless steel consumption in the construction industry will serve as a major driving factor for the market to grow significantly. Stainless steel was not commonly utilized for building structural applications initially, owing to its expensive cost. However, technological advancements have made this steel more accessible and affordable over the last decade while improving corrosion resistance and longevity. Hence, the growing number of commercial and residential buildings, increasing commissioning of infrastructural projects, and rising water leakage issues will augment the stainless steel demand in the construction industry.

Moreover, the increasing demand for stainless steel from the metallurgical, construction, transportation, and industries is likely to drive the market growth in the coming years.  Stainless steel is used in automotive applications as it is corrosion resistant and has high-temperature oxidation, which offers energy absorption properties and maintains its mechanical properties over a wide temperature range. 45 to 50% of automotive exhaust systems are made of stainless steel. The role of stainless steel in this sector has transformed throughout the years owing to its austenitic stainless steel and its grades, chemical composition and application in the automotive industry. Moreover, the use of stainless steel is a key structural component in automotive construction. The aesthetic appeal of polished stainless steel is frequently used to enhance the external appearance of modern automobiles. These factors are anticipated to boost the demand for steel in the market, subsequently boosting the demand for ferrochrome.

RESTRAINING FACTORS

Availability of Substitutes to Hinder Market Augmentation

Carbon fiber has been replacing stainless steel in the automotive sector nowadays as it is able to absorb large amounts of impact energy and also helps to increase automobile safety. This will affect the market negatively. Additionally, it is used in automobiles to lower weight while providing enough strength to withstand the rigors of racing. Moreover, the large amount of electricity needed in ferrochrome production will also pose a challenge for businesses operating in this domain.

Ferrochrome (FeCr) Market Segmentation Analysis

By Product Type Analysis

High Carbon Segment to Lead Owing to Increasing Use in Steel Industry

Based on product type, the market is segmented into high carbon, low carbon, and others.

High carbon segment is anticipated to remain the largest segment during the forecast period owing to its availability and lower costs of larger reserves than other products. As a result, this high carbon ferrochrome is mainly consumed by stainless steel manufacturers.

Low carbon segment is projected to register a significant growth rate during the forecast period as it is widely used in the production of structural steels, alloy steel, and tool steels. The main applications of the product are low alloy steels, carbon, and tool steels. Steel manufacturers usually use low carbon FeCr in the final stages of manufacturing to add the exact amount of chromium without affecting the carbon content.

By Application Analysis

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Stainless Steel Segment to Dominate the Market due to High Adoption in Construction Industry

Based on application, the market is segmented into stainless steel, specialty steel, and others.

The stainless steel segment is expected to dominate during the forecast period due to increasing product consumption in the construction industry. Stainless steel was not usually utilized for structural construction reasons initially due to its expensive cost. However, technological advancements have made this steel more affordable and accessible over the last decade while improving corrosion resistance and longevity.

Moreover, adding chromium to steel can considerably improve the oxidation and corrosion of steel. Chromium is used as ferrochrome in various steels with special physicochemical properties. High-carbon FeCr is used as an alloying agent for tool steel, stamped steel, ball steel, and high speed steel to improve the hardenability of steel. Also, it increases the hardness and wear resistance of steel.

REGIONAL INSIGHTS

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Asia Pacific held the largest ferrochrome market share in 2023, owing to increasing product demand from stainless steel manufacturers in China and India. Rising stainless steel production is boosting product demand, and thus driving market growth in this region. The demand for stainless steel is growing steadily due to increasing urbanization, which further complements the market growth.

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In North America, the U.S. is a significantly larger market compared to Canada. Declining imports of stainless steel due to the ongoing trade war between China and the U.S. is anticipated to improve the production of stainless steel in the U.S. However, rising prices for stainless steel due to higher demand from domestic manufacturers can have a negative impact on demand, thus balancing production. This uncertainty is expected to affect the country's dynamics of the market.

In Europe, the market is anticipated to grow with a significant CAGR during the forecast period. The market growth in the region is owed to a rapid expansion of the automotive industry and increasing research & development activities. The advancement in the product will boost the consumption of stainless steel in the region. The region is a major manufacturer of automobiles. Stainless steel is largely used in the body frames, components, and parts of an automotive. Such factors are likely to increase demand for the product.

Meanwhile, Latin America and the Middle East & Africa will register a moderate growth rate during the forecast period owing to the rising production of specialty and stainless steel in these regions.

List of Key Companies in Ferrochrome (FeCr) Market

Strategic Planning Adopted by Companies to Strengthen their Market Share

The global market is consolidated with key players operating in the industry being Tata Steel Mining Limited, Samancor Chrome, TNC KAZCHROME JSC, Ferro Alloys Corporation Ltd, and HERNIC.

Market participants are fiercely competing with international and regional players with extensive distribution networks, regulatory know-how, and suppliers. In addition, companies sign contracts, form acquisitions, and enter into strategic partnerships with other leaders to expand their existing markets.

LIST OF KEY COMPANIES PROFILED:

• Tata Steel Mining Limited (India)


• Samancor Chrome (South Africa)


• TNC KAZCHROME JSC (Kazakhstan)


• Ferro Alloys Corporation Ltd.(FACOR) (India)


• HERNIC (South Africa)


• Eurasian Resources Group (Luxembourg)


• IMFA (India)


• Daido Steel Co., Ltd. (Japan)


• Sandvik AB (Sweden)


• Baosteel Group Corporation (China)

KEY INDUSTRY DEVELOPMENTS:

• September 2023: Indian Metals and Ferro Alloys Ltd. announced the ramping up of the existing ore mining capacity and setting up a new greenfield smelting capacity in Kalinganagar, Odisha. This step has been taken to cater to the rising domestic demand for stainless steel.


• May 2022: Ironveld acquired Ferrochrome Furnaces. The company will provide Ironveld with their existing smelting production unit which is located in Rustenburg, South Africa and the opportunity to commence mining and processing.


• April 2021: Tata Steel Mining Limited, a wholly-owned subsidiary of Tata Steel, announced its plans to increase its ferrochrome production capacity to 900,000 tonnes per year.


• December 2020: Ferro Alloys Corporation Ltd. (FACOR), a part of Vedanta, has signed a conversion agreement with TATA Steel Mining Limited to process chrome ores. Through this agreement, Ferro Alloys Corporation Ltd. increased its ferrochrome furnace production capacity.


• November 2019: EESTech announced the development of Samancor's FeCr slag recycling program, "Zero Waste", at the Ferro metals plant in Emalahleni in Samancor Chrome. The FeCr slag recycling plant can process about 650,000 tons of FeCr slag annually.

REPORT COVERAGE

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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and applications. In addition, it offers insights into industry trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

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