Market Overview:
North America Ferrosilicon Market Size Was Valued at USD 2398.5 Million in 2022, and is Projected to Reach USD 2,922.34 Million by 2030, Growing at a CAGR of 2.50% From 2023-2030.
Ferrosilicon is made by reducing silica or sand with coke in the presence of iron. Typical sources of iron are scrap metal or rolled steel. Ferrosilicon with up to about 15% silicon is produced in blast furnaces lined with acid-refractory bricks. There are generally two types of ferrosilicon such as sputtered ferrosilicon and powdered ferrosilicon. Ferrosilicon is used in many industries such as carbon and other alloy steel, stainless steel, electronic steel, cast iron, and magnesium. An increase in demand for steel and metal alloys and growth in the automotive and construction industries are driving the Ferrosilicon market. Governments have implemented several initiatives to increase the use of steel in various industries and reduce carbon footprints. The steel industry is the most important downstream user of domestic iron ore. Ferrosilicon is mainly used in the production of steel in steel mills. Corrosion and wear resistance, high specific gravity, high strength, high magnetism and hardness, and high temperature resistance are the advantages of Ferrosilicon. Therefore, several companies invest in the production of Ferrosilicon.
Top Key Players for Ferrosilicon Market:
Russian Ferro-Alloys Inc. (US), Elkem AS (Norway), Globe Specialty Metals Inc. (US), Ferroglobe PLC (UK), IMFA (US), Washington Mills Electro Minerals Corp (UK), Thyssenkrupp Materials Trading GmbH (US), Mississippi Silicon LLC (US), and Other Major Players
Market Dynamics and Factors for Ferrosilicon Market:
Drivers:
Increasing Use of Ferrosilicon in The Production of Steel and Metal Alloys
Since silicon and oxygen have a very strong chemical reactivity with each other, this makes ferrosilicon an effective antioxidant used in the steelmaking process. Growing silicon production is expected to boost the ferrosilicon market during the forecast period. According to the US Geological Survey, total silicon production increased from 277 in 2020 to 310 in 2021. The growing use of ferrosilicon in the production of steel and metal alloys is driving the ferrosilicon market.
Opportunities:
Increasing Demand for Steel in Different End-User Industries
The demand for steel is high in various industries such as automotive, construction, and industrial. The use of iron in steelmaking 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 central role in modern economic development. The steel industry, foundries, and the ferroalloy industry are important markets for ferrosilicon. They account for more than 90% of the total annual demand for ferrous metals and it creates a growth opportunity for the market.
Segmentation Analysis of the Ferrosilicon Market:
By Application, the deoxidizing segment is expected to grow during the forecast period. This is due to the increasing and continuous demand for steel globally in various industries and the use of ferrosilicon as an antioxidant in the steel industry. Steel is deoxidized with ferrosilicon in the last stage of production to increase the elasticity and strength of steel. To increase the elasticity and strength of the steel, the steel is deoxidized with iron ore in the last stage of production. Ferrosilicon is used as a deoxidizer and alloying agent in the steel-making process. Such factors increase the Deoxidizer segment growth.
By End-user, stainless steel is one of the major end users for ferrosilicon, but it's important to note that the ferrosilicon market is influenced by various factors and has multiple segments. Ferrosilicon is an alloy of iron and silicon that is used in a variety of industries, and its demand can be influenced by different end-use sectors. Stainless steel production is one of the key sectors that uses ferrosilicon as an alloying element. Ferrosilicon is added to stainless steel to improve its properties, such as corrosion resistance and strength. Therefore, the stainless-steel industry is a significant consumer of ferrosilicon.
Regional Analysis of the Ferrosilicon Market:
The United States is Expected to Dominate the Market Over the Forecast Period. The United States has a significant presence in the industry, with products widely used in key end-use industries including electronics, automotive, and construction. The increase in construction activity increases the demand for products. For example, in June 2021, President Joe Biden announced his support for a $1.2 trillion bipartisan infrastructure framework. The growth is due to increased demand for steel in the construction, automotive, aerospace, and defense industries. The North American construction industry is one of the leading sectors in the world and its share of the world's GDP is significant. Growth in the construction industry is a major driver of demand for North American products.
Key Industry Developments in the North America Ferrosilicon Market:
In May 2023, Elkem and environmental foundation Zero announced that they entered in partnership for industrial climate solution. Under the collaboration with Elkem, zero will contribute its knowledge within climate change and policy.
In October 2021, Elkem announced a strategic investment plan to unlock new specialty silicones supply for customers in Europe, the Middle East and Africa (EMEA) and the Americas. The company will invest around USD 4 million to upgrade and debottleneck its silicone upstream plant in Roussillon, France.
