Ferroalloys Market Grows with Increasing Demand from Shipbuilding Industries

The global ferroalloys market was valued at USD 50.35 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2030. This growth is primarily fueled by rising demand for ferroalloys in steel production worldwide. The increasing consumption of construction steel is expected to further boost steel manufacturing. Consequently, the growing need for non-residential and commercial buildings, along with efforts to develop affordable housing in emerging economies, is likely to drive the demand for ferroalloys.

Application Insights & Trends

Cast iron, an iron-carbon alloy containing more than 2% carbon and approximately 1–3% silicon, is characterized by its low melting point and cost-effectiveness. Its versatility allows it to be molded into various shapes, making it suitable for diverse applications such as cookware, pipes, machinery, and automotive components like cylinder heads, engine blocks, and gearbox housings.

In 2023, the carbon and low alloy steel segment accounted for over 46.0% of total market revenue, marking it as the dominant segment. Composed mainly of carbon, iron, silicon, and manganese, carbon steel is known for its strength and durability, though it offers lower corrosion resistance and melting point compared to other steel types. Additionally, it is less ductile and weldable. These properties make carbon steel ideal for building structures, steel pipes, cutting tools, washers, and fasteners, as well as various applications in the manufacturing sector.

Product Insights

Ferro silico manganese, an alloy of iron and manganese with high manganese and low silicon content, functions as both an alloying and deoxidizing agent in the production of steel, stainless steel, and manganese-rich steel. Global demand for ferro silico manganese is expected to rise, driven by steel requirements from the electric vehicle (EV) and aerospace industries. This alloy enhances steel with qualities such as lightweight, high strength, and corrosion resistance—key properties sought after in these industries, making it preferable to alternative steel alloys.

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Regional Insights

The North American ferroalloys market is anticipated to grow due to investments in construction and infrastructure development. Countries like the U.S. and Mexico are prioritizing economic advancement by channeling funds into infrastructure projects and expanding their manufacturing sectors.

Key Ferroalloys Company Insights

Notable companies in the market include Tata Steel Limited and Gulf Ferro Alloys Company (Sabayek).

Tata Ferro Alloys and Minerals Division (FAMD), part of India’s Tata Steel Limited, represents the company’s largest non-steel business. Since 2012, it has been producing and marketing silico manganese, supplying ferroalloys to its integrated steel plant in Joda, Odisha. Tata Steel is also the leading ferroalloy producer serving steel plants across the Asia Pacific, with manganese and chrome ore reserves in Odisha.
Gulf Ferro Alloys Company (Sabayek), founded in 1992 and headquartered in Jubail, Saudi Arabia, manufactures ferroalloys for steelmaking. It is currently the largest producer in the Gulf Cooperation Council (GCC) region, with an annual production capacity of 140,000 tons. Its product range includes silico manganese, ferro manganese, SiMn/FeMn slag, and fumes.