Based on product, ferroalloy market is categorized into ferro chrome, ferro manganese, ferro silicon, ferro silicon-manganese and others. Among these ferro manganese shows a decent annual growth rate of about 6% over the forecast time spell. These are used in the production of steel as a desulfurizing agents. The product removes nitrogen bubbles and reduces the amount of iron oxide, which is undesirable during production of steel. It also acts as an alloying element contributor in various types of steels.
Ferrochrome is mainly used in production of stainless steel. This helps in providing corrosion resistance along with aesthetics. These are also used in manufacturing tool steels and some ball bearing steels used in the manufacturing sector.
On the basis of application, ferroalloy market is segmented into carbon steel, alloy steel, stainless steel and others. Among these alloy steel shows the maximum annual growth rate of about 6% from 2018 to 2025. These are majorly used in manufacturing pipes and bearings. Pipes made up of these steels have excellent performance properties and have major applications in oil & gas drilling. Alloy steel are also used to manufacture load carrying components in various types of bearings. Alloy steels have applications in various end use industries such as general engineering, aerospace & defense, railway, etc. With increasing investment in manufacturing sector of various emerging nations, the demand for alloy steels is also expected to increase in near future.
Carbon steel shows a CAGR of 45.5% over the forecast timespan. It is mainly used in applications where wear resistance, hardness and strength are required such as in drill bits, wrenches, chisels, saw blades, springs, gear wheels, structural wires & cables, railway wheels, etc. The demand for ferroalloys for carbon steels will increase over the forecast time period due to increasing industrial activities in developing nations.
Middle East & Africa shows a decent growth rate of about 5% from 2018 to 2025, driven by growth in construction sector of the region. Middle East has a significant number of skyscrapers and stainless steel is used predominantly to build these structures. Also, with presence of oil & gas reserves all across the region demand for steels used in pipes, casings, tubes, etc. is very significant.
Ferroalloy products are used in upstream, midstream and downstream segments of oil, gas and other petrochemicals. Rising crude oil production & exploration activities and measures taken by governments of various nations of the region to boost industrial sector will catapult demand for different type of steels. This will subsequently augment the growth of ferroalloy market over the forecast time period.