The project report includes Present Market Position and Expected Future Demand, Market Size, Statistics, Trends, SWOT Analysis and Forecasts. Report provides a comprehensive analysis from industry covering detailed reporting and evaluates the position of the industry by providing insights to the SWOT analysis of the industry.
Ferrosilicon is an alloy of iron and silicon with typical silicon content by weight of 15–90%. It contains a high proportion of iron silicides. Ferrosilicon containing silicon is used extensively by the iron and steel industry, and silicon is present in most commercial grades of steel and cast iron.
Ferroalloys Plays major role in Steel Production and industrial development. Ferro-alloys are iron based alloys with varied elements introduced in steel making to cater to the specific needs. These are specified additions to the production of steel for various applications.
Ferro alloys are iron bearing alloys with additives which are passed on to steel to meet specific needs. The Ferro alloys are brittle and can be crushed to any size to be added to the molten steel as additives. Generally the additives as in steel are invariably added in the form of Ferro alloys. These are established additives in the steel production to obtain specific needs.
The market for ferrosilicon is largely in steel (85%) and cast iron (15%), with very small amounts used in non-ferrous alloys.
The demand for ferrosilicon has been increasing with that of alloy and special steels. Owing to the lack of a viable alternative that can meet the diverse applications, the global ferro alloys market is estimated to expand at an CAGR of 5.9% till 2025. A significant share of the bulk ferro alloys are used in the production of the steel because of the low prices of the bulk ferro alloys and high production around the major producing regions. The prosperity of the building and construction industry in a number of emerging economies is another key driver of the global ferro alloys market, wherein the development of lightweight and high strength steel grades is expected to open up opportunities.
It is intended to prepare a Feasibility Report to install Ferro Silicon production facility with a capacity of 14400 Tons/ Year as a green field project.
2. Market Overview
Global
The global ferrosilicon market was valued at US$ 11.3 Billion in 2021.It is estimated to grow at a CAGR of 2.5% from 2022 to 2031.The global ferrosilicon market is expected to reach a value of US$ 15.1 Billion by the end of 2031.
Industries are seeking metallic addition agents that are used in iron and steel making in order to incorporate an alloying element into the molten material or refined steel. Ferrosilicon is used as master alloy in iron and steel production. The ferrosilicon market is estimated to grow at a sluggish CAGR of 2.5% during the forecast period primarily due to the environmental challenges in the transport of ferroalloys. Hence, companies should adopt special measures such as storage of ferroalloys in water-tight containers and isolation of machinery & equipment used for the handling of raw materials to minimize the emission of polluting particles in the environment. Steel is an important commodity in most end-use industries; therefore, manufacturers have been establishing stable revenue streams in the steel industry during the post-COVID-19 period.
Ferrosilicon is generally of two types: atomized ferrosilicon and milled ferrosilicon. Ferrosilicon is used in various industries such as carbon & other alloy steel, stainless steel, electrical steel, cast iron, and magnesium.
Rise in demand for steel and metal alloys; and growth in automobile and construction industries are driving the ferrosilicon market. Numerous initiatives are being taken by governments to boost the usage of steel in different industries and reduce carbon footprint.
The steel industry is the key downstream user of domestic ferrosilicon. Ferrosilicon is primarily used in steelmaking in steel mills. Corrosion- and abrasion-resistance, high specific gravity, high strength, high magnetism & hardness, and high temperature-resistance are benefits offered by ferrosilicon. Therefore, several companies are investing in the production of ferrosilicon.
Increase in environmental issues is prompting governments of several countries to focus on the use of ferrosilicon. Several international bodies are providing funds to developing countries in order to increase the usage of ferrosilicon.
High Demand for Steel in Automotive, Construction, and Manufacturing Industries to Drive Market
Ferrosilicon (FeSi) is an alloy of iron and silicon with highly variable silicon content (between 10% and 90%). It is used as a so-called master alloy in steel production. It is added in small quantities in order to adjust the properties of the melt, the cooling process, and the finished product.
Steel is a highly versatile material. The basic constituent of steel is iron; however, the proportion of other elements lends each type of steel certain specific properties. Ferrosilicon provides increased resistance to corrosion and improves the hardness & tensile strength of steel. Demand for steel is high in various industries such as automotive, construction, and manufacturing. Usage of ferrosilicon in steel making improves the physical, chemical, and mechanical properties of steel. It also improves the quality of steel and its castings. Ferrosilicon products are important raw materials for steel and other metallurgical industries. They play a vital role in modern economic development. Steelmaking, foundry, and ferroalloy industries are prominent markets for ferrosilicon. These account for more than 90% of the total demand for ferrosilicon each year.
Electrical steel, often called silicon steel contains a significant quantity of ferrosilicon and silicon to improve electrical qualities such as resistivity. Demand for ferrosilicon is estimated to rise, as the demand for electrical steel increases in the construction of motors, transformers, and other power generating devices. In electrical steel, ferrosilicon is used to manufacture magnetic cores for electric motors. This helps improve motor efficiency, lower battery capacity requirements, and extend range.
Increase in demand for renewable energy is another key driver of the global ferrosilicon market. Steel is crucial in the development of infrastructure for renewable energy generation such as solar, tidal, and wind energy. On the other hand, the usage of ferrosilicon is rising in the production of silicon steel for designing electro motors and transformer cores. Ferrosilicon and other silicon alloys are produced by reducing quartz, with coal and iron or other ores at very high temperatures.
