- In terms of value, the global noble ferroalloys market is projected to expand at a CAGR of ~ 8% from 2019 to 2027, according to a new research report by TMR on the noble ferroalloys market for the forecast, period of 2019–2027.
- In terms of value, the global noble ferroalloys market is expected to reach a value of ~US$ 68 Bn by 2027. The global noble ferroalloys market is driven by a rise in the demand for superalloys and increasing steel production across the globe.
- The global noble ferroalloys market in Asia Pacific held a significant share of the global noble ferroalloys market in 2018. Furthermore, the noble ferroalloys market in Asia Pacific is estimated to expand at a CAGR of ~ 8% during the forecast period, owing to an increase in the application of high grade steel in the region.
- Based on product, the ferronickel segment accounted for a key share of the global noble ferroalloys market in 2018. Ferrotungsten and ferronickel are estimated to be prominent product segments of the global noble ferroalloys market in the near future.
- China and India are major producers and consumers of noble ferroalloys in the world. Significantly high steel production in these countries is a major factor driving the overall demand for ferroalloys in the region.
Rise in Demand for Ferronickel Alloy
- Based on product, the ferronickel segment accounted for a prominent share of the global noble ferroalloys market, in terms of value and volume, in 2018. The ferronickel segment in the global noble ferroalloys market is highly lucrative, due to its low price, less toxicity, and easy availability in the market.
- Ferronickel is employed in the manufacture of nickel alloys and austenite stainless steel. It is applied in industries such as engineering, electrical & electronics (E&E), transportation, metal goods & tubular products, and building & construction.
- Expansion of the noble ferroalloys market is directly linked to the expansion of the steel industry. Almost 80% of noble ferroalloys produced are employed for steelmaking. After steel, noble ferroalloys are utilized in the production of superalloys and alloys (excluding steel). Thus, the number of noble ferroalloy industries is increasing across the globe, due to consistent expansion of steel-producing companies.
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Extensive Usage of Noble Ferroalloys in High Grade Steel Application
- Based on application, the high grade steel segment held a notable share of the global noble ferroalloys market in 2018. Increase in steel production owing to a rise in the demand for high-grade steel in various end-use industries is a key factor driving the demand for noble ferroalloys.
- Noble ferroalloys are added to steel in order to enhance the properties of steel, such as ductility, strength, fatigue, and corrosion resistance. They are extensively employed in the steel industry for the deoxidation of steel and cast iron. Furthermore, the addition of noble alloys helps control the molecular structure of steel and its properties.
- Apart from high-grade steel, some noble ferroalloys are also utilized in superalloys. Superalloys are high-performance alloys that exhibit characteristics such as excellent surface stability, good mechanical strength, resistance to deformation and thermal creep, and resistance to oxidation or corrosion. These superalloys are used in the manufacturing of jet engines and the aerospace industry. However, high cost and use in precise applications make superalloys less lucrative as compared to high-grade steel applications.
Asia Pacific Accounts for a Prominent Share in Terms of Volume and Value
- Asia Pacific was a prominent market for noble ferroalloys, globally, and accounted for ~ 70% share, in terms of volume and value, in 2018. The noble ferroalloys market in the region is expected to expand at a significant CAGR during the forecast period.
- The presence of a large number of steel producers, especially in China and India, where noble ferroalloys are majorly used, is a key factor that is expected to drive the demand for noble ferroalloys in Asia Pacific. Furthermore, Asia Pacific is a leading producer of ferroalloys and steel in the world.
- According to the International Stainless Steel Forum (ISF), China accounted for more than 50% of the world stainless steel production in 2018. Countries in Asia, excluding China and South Korea, also registered around 5.8% year-on-year growth in terms of steel production. This is anticipated to be a key factor that is likely to propel the demand for noble ferroalloys.
- Favorable demand-supply dynamics in India for the steel industry is driving the demand for noble ferroalloys in the country. Industrial dynamics such as 100 % FDI allowed in the mining sector, exploration of metal & nonmetal ores under the Automatic Route, and outlay of US$ 57.38 Bn budget allocation in infrastructure in order to drive domestic consumption of steel, coupled with increased import duties on China-made ferroalloy products are creating opportunities to boost the domestic consumption of ferroalloys.
Noble Ferroalloys Market: Competition Landscape
- The global noble ferroalloys market is highly fragmented with the presence of a large numbers of players. A majority of the manufacturers of noble ferroalloys are located in Asia Pacific, especially in India and China. Prominent manufacturers of noble ferroalloys include Shanghai Shenjia Ferroalloys Co. Ltd., LekonGermess Ltd, FE Mottram Ltd, Global Titanium Inc., Nortech Ferro Alloys Pvt. Ltd., Team Ferroalloys Pvt. Ltd., and Rama.
- Companies are focusing on export to other countries in order to sustain in the noble ferroalloys market.