SAN FRANCISCO, Nov. 12, 2019 /PRNewswire/ -- The global ferrochrome market size is anticipated to reach USD 28.83 billion by 2030, expanding at a 4.6%CAGR during the forecast period, according to a new report by Grand View Research, Inc. The market is mainly driven by demand from booming stainless steel industry especially in Asia. Stainless steel industry accounts for roughly more than 75% of the FeCr consumption in the globe. China, being the largest stainless steel producer is therefore also the biggest consumer of FeCr.
The global stainless steel production is predicted to witness considerable growth over the coming years owing to strong demand from building & construction industry. Stainless steel is largely consumed in building & construction industry due to its aesthetic appearance and corrosion resistance properties. Moreover, a variety of stainless steel products are easily fabricated and therefore, preferred by architects and building contractors.
Key suggestions from the report:
- High carbon ferrochrome dominated market in 2018 with a volume share of 85.7% in 2018. It is expected to maintain its dominance over the forecast period owing to abundant reserves available of high carbon chromite ore as compared to other products.
- Stainless steel application is predicted to grow the fastest with a CAGR of 4.9% from 2019 to 2030, in terms of revenue. As ferrochrome currently has no substitute for stainless steel, it is poised to witness lucrative growth.
- In terms of volume, Asia Pacific acquired the highest share of 78.5% in 2018. This is mainly attributed to the dominant position of China in terms of stainless steel production.
- North America is projected to grow at a CAGR of 2.1% from 2019 to 2025, in terms of volume. The protectionist policies currently implemented by the U.S. government are expected to propel domestic steel production and thereby propel ferrochrome demand.
- In August 2019, Glencore, one of the major FeCr manufacturer of South Africa announced a cut in its ferrochrome production by 10% for 2019. This decision was taken owing to the electricity concerns in South Africa.
Read 117 page research report with ToC on "Ferrochrome Market Size, Share & Trends Analysis Report By Product (High carbon, Low Carbon), By Application (Stainless Steel, Other Steels), By Region, And Segment Forecasts, 2019 - 2030" at: https://www.grandviewresearch.com/industry-analysis/ferrochrome-market
Majority of chromite ore suppliers in these regions are integrated in nature as they are also involved with manufacturing of ferrochrome. Glencore and Samancor Chrome are some of the major players in South Africa that produce ferrochrome by extracting chromite from their own operating mines situated in South Africa. The chromite ore suppliers are concentrated in South Africa, Kazakhstan, India, Turkey, and Zimbabwe, as these countries are host to enormous amount of chromite ore reserves.
Industry rivalry in ferrochrome market is quite intensive owing to the presence of several established and integrated companies that are consolidated in South Africa, India, Turkey, and Kazakhstan. China is also among the largest suppliers of the FeCr along with South Africa. However, the suppliers in China is characterized by various small to medium sized players that import chrome ore mainly from South Africa for their FeCr production.
Major challenge faced by the South African manufacturers is lack of power supply as ferrochrome manufacturing is an energy intensive process. Power shortages coupled with high electricity tariffs over the past few years in South Africa have adversely affected the ferrochrome production and has led to either shut down or acquisition of many suppliers in the country. Some of the recent acquisitions include Samancor Chrome acquiring local South African subsidiary International Ferro Metals SA of International Ferro Metals.
Grand View Research has segmented the global ferrochrome market on the basis of product, application, and region:
- Ferrochrome Product Outlook (Revenue, USD Million, Volume, Kilotons 2008 - 2030)
- High carbon
- Medium carbon
- Low carbon
- Ferrochrome Application Outlook (Revenue, USD Million, Volume, Kilotons, 2008 - 2030)
- Stainless steel
- Other steels
- Ferrochrome Regional Outlook (Revenue, USD Million, Volume, Kilotons, 2008 - 2030)
- North America
- Europe
- Asia Pacific
- India
- South America
- Middle East & Africa
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About Grand View Research:
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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