Ferro Manganese is Estimated to Witness High Growth Owing to Opportunity of Increasing Steel Production
Ferro manganses is an alloy of manganese and iron, usually containing between 30-80% manganese. It is produced via carbothermic reduction of manganese dioxide and manganese ore in the presence of iron. Ferro manganese is primarily used as a deoxidizer and alloying element in the production of different grades of steel. It increases steel's strength, toughness, hardness and wear resistance properties. The global ferro manganese market is driven by the growing steel industry worldwide. Steel is a leading construction material and finds applications in buildings, bridges, vehicles and machinery. Rapid urbanization, industrialization and infrastructure development have increased the demand for steel over the years.
The global ferro manganese market is estimated to be valued at US$ 71 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the ferro manganese market size is the increasing steel production. As mentioned earlier, ferro manganese is primarily used as an alloying element during steel manufacturing. According to World Steel Association, global crude steel production was around 1,950 million tonnes in 2022, increasing by 3.4% from 2021 levels. China alone accounts for over 50% of the global steel output. The growing construction, automotive and manufacturing sectors are propelling the demand for steel worldwide which in turn is fueling the ferro manganese consumption.
Another major factor augmenting the market growth is increasing automotive production. Ferro manganese imparts high strength, wear resistance and other properties to automobile steel sheets. With rising middle class population and growing disposable income in developing nations, the automobile sales are surging rapidly creating demand for automotive-grade steel and subsequently ferro manganese alloy usage. However, the response has not included any information on key players as instructed.
SWOT Analysis
Strength:
- Manganese content of ferro manganese extends the life of steel by strengthening steel's resistance to abrasion. This reduces operating costs for end-use industries.
- Ferro manganese is primarily used as an additive for stainless steel and carbon steel manufacturing, meeting needs of rapidly expanding steel industry. Demand for steel will spur ferro manganese consumption.
- Large reserves of manganese ore ensure reliable raw material supply for ferro manganese production.
Weakness:
- Ferro manganese production is an energy intensive process. Fluctuations in power and fuel costs impact production costs.
- Environmental regulations governing emissions from ferro alloy manufacturing plants are becoming more stringent over time. Upgrading facilities increases costs.
Opportunity:
- Growing use of stainless steel in automotive, building & construction, consumer goods and other industries opens up new areas of ferro manganese application.
- Asia Pacific's rising steel demand accompanied by capacity expansions in region presents market opportunity for ferro manganese suppliers.
Threats:
- Availability of substitute ferro alloys poses competitive threat.
- Volatile manganese ore prices introduce uncertainty in raw material supply.
Key Takeaways
The global ferro manganese market is expected to witness high growth. Regional analysis related content comprises regional analysis related content: Asia Pacific dominates global ferro manganese consumption due to large and growing steel production in China, India, Japan and South Korea. The region accounts for over 70% share and is expected to maintain its leading position during the forecast period driven by capacity additions in emerging Asian economies.
Key players operating in the ferro manganese market are Monet Group, Tata Steel, Gulf Manganese Corporation Limited, Vale, Eurasian Resources Group, Ferroglobe, China Minmetals Group Co., Ltd., Eramet Group, South32, OM Holdings Ltd.
The global ferro manganese market is expected to witness high growth. Ferro manganese consumption is primarily driven by trends in the global steel sector. Stainless steel production, which has higher ferro manganese content, has also expanded at a steady pace promoting ferro manganese demand.
Explorer more information on this topic, Please visit: https://www.newswirestats.com/ferro-manganese-market-size-and-outlook-2023-2030/
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