Noble Ferroalloys Market - Forecast(2024 - 2030)

Noble Ferroalloys Market Overview

Noble Ferroalloys market size is forecast to reach US$68.2 billion by 2027, after growing at a CAGR of 7.1% during 2022-2027. Noble ferroalloys such as ferromolybdenum, ferronickel, ferrotungsten, ferrovanadium, and more are a group of materials that are alloys of iron that contain a high percentage of one or more non-ferrous metals as alloying elements. Due to their outstanding properties such as excellent durability and high tensile strength, these alloys are widely used in several industries such as construction, automotive aerospace, and marine. Increasing use of superalloys in the automotive and aerospace sector, the advancement of technology, development of high strength and lightweight steel grades, rising importance in the iron and steel industry, and increasing infrastructural and construction activities are some of the major factors boosting the growth of global noble ferroalloys market. 

COVID-19 Impact

The COVID-19 epidemic negatively impacted the noble ferroalloys demand in a variety of end-use industries, including aerospace, automotive, construction, and more. Due to the closure of non-essential businesses, the outbreak had a significant impact on the automotive and aerospace industries. As demand for automobiles and aircraft dwindled, production was abruptly halted. For instance, global automotive production declined by 16 percent in 2020, according to the International Organization of Motor Vehicle Manufacturers. Due to the impact of the COVID-19 pandemic, Toyota Motor Corporation's global vehicle production in 2020 was down 12.6 percent year over year. Furthermore, construction output was significantly reduced during the pandemic. The construction industry in the United Kingdom, for example, was 11.6 percent lower in July 2020 than it was in February 2020, according to the Office for National Statistics. The level of construction activity in the United Kingdom was 10.8% lower in August 2020 than it was in February 2020. Due to this the demand for steel and superalloys products significantly reduced, which impacted the noble ferroalloys market revenue in 2020.

Report Coverage

The report: “Noble Ferroalloys Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Noble Ferroalloys Industry.

By Type: Ferromolybdenum (Fe-Mo), Ferronickel (Fe-Ni), Ferrotungsten (Fe-W), Ferrovanadium (Fe-V), Ferroniobium (Fe-Nb), Ferrotitanium (Fe-Ti), Ferroaluminum (Fe-Al), Ferroboron (Fe-B), and Others
By Process: Carbo Thermic Process, and Alumino Thermic Process
By Application: High Grade Steels, Superalloys, Welding Electrodes, Special Grade Steels, and Others
By End-Use Industry: Building & Construction (Residential, Commercial, Industrial, and Infrastructural), Automotive (Passenger Vehicles (PV), Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV)), Aerospace (Commercial, and Military), Marine (Cargo, Passenger, and Others), Chemical, Industrial, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia-Pacific dominates the noble ferroalloys market, owing to the increasing demand and consumption of steel in the region. For instance, according to India Brand Equity Foundation (IBEF), in January-November 2021, the domestic total finished steel production was 97.882 MT, while consumption was 93.057 MT. Actual crude steel production is expected to reach 255 MT between 2030 and 31.
• Ferronickel is used in the production of steel. The rise in demand for stainless steel in the building & construction, automotive, aerospace sectors, and the manufacture of utensils is expected to propel the demand for noble ferroalloy during the forecast period.
• Superalloys are becoming the steel of choice for applications in the aerospace industry as it helps in reduction in greenhouse gas (GHG) emissions. They are also used for producing heat exchangers, submarines, and industrial gas turbines. This factor is anticipated to act as an opportunity for the market.
• To improve the overall efficiency and cost-effectiveness of ferroalloy production plants, noble ferroalloy manufacturers are focusing on using new technologies and innovations to design plant equipment, process technology, and product mix. SMS Siemag AG, for illustration, has developed a new technology for ferroalloy production that combines vacuum and converter technology.

Figure: Asia-Pacific Noble Ferroalloys Market Revenue, 2021-2027 (US$ Billion)

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Noble Ferroalloys Market Segment Analysis – By Type

The ferronickel (Fe-Ni) segment held the largest share in the noble ferroalloys market in 2021 and is forecasted to grow at a CAGR of 7.5% during 2022-2027, owing to its easy availability and cost-effectiveness. Ferronickel is a ferroalloy made up of about 35% nickel and 65% iron. Ferroalloys are an important component in the production of superalloys. In the production of superalloys, they are used as deoxidizers and alloy additives. They give superalloys unique properties such as increased corrosion resistance, improved hardness, and tensile strength at high temperatures, wear, and abrasion resistance, increased creep strength, and more. Thus, owing to these properties of ferronickel they are often preferred over other noble ferroalloys such as ferromolybdenum, ferrotungsten, ferrovanadium, thereby flourishing the segment growth during the forecast period.

Noble Ferroalloys Market Segment Analysis – By End-Use Industry

The building and construction segment held the largest share in the noble ferroalloys market in 2021 and is forecasted to grow at a CAGR of 8.9% during 2022-2027, owing to increasing demand for noble ferroalloys such as ferromolybdenum, ferronickel, ferrotungsten, ferrovanadium from the building and construction industry. Noble Ferro Alloys are used to make alloy steels, high-speed steels, and other special-grade steels, and they give steel strength and corrosion resistance. Steel is used to build everything from houses to car parks to schools and skyscrapers. Steel is also used on roofs and as exterior wall cladding in commercial and industrial structures. Construction is one of the most important steel-using industries, accounting for more than half of global steel demand, according to the World Steel Association. Steel manufacturers all over the world are increasingly offering construction solutions that allow for energy-efficient and carbon-neutral structures. Steel solutions, for example, reduced the cost of electricity and district heating in the HAMK Sheet Metal Centre (Finland) – a Near Zero Energy Building (nZEB) – from €12,400 to €5,200 per year (reference building). Thus, the growing demand for steel from the building and construction sector is propelling the noble ferroalloys market.

Noble Ferroalloys Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the noble ferroalloys market in 2021 up to 48%, owing to spiraling demand for noble ferroalloys to manufacture steel from the flourishing building and construction industry in the region. Infrastructure and commercial construction projects are on the rise in countries like India, China, and Australia, which is expected to drive demand for noble ferroalloys in the region over the forecast period. The Ministry of Road Transport and Highways in India has set a goal of expanding the national highway network to 2 lakh kilometers by 2022. Currently, China is working on several airport construction projects, such as, which are either in the planning or development stages. Beijing Capital International Airport, Chengdu Shuangliu International Airport, Guangzhou Baiyun International Airport and other airports in China are among them. Between 2026 and 2027, Australia's federal government's 'Infrastructure Investment Program' is expected to give US$57.5 billion in infrastructure funding, including funding for the US$7.7 billion "National Rail Program" and equity for many other significant infrastructure investments, increasing market demand. With all such investments and a growing number of infrastructure and construction projects, the steel demand is therefore likely to increase at a robust pace, thereby driving the noble ferroalloys market in the APAC region.

Noble Ferroalloys Market Drivers

Increasing Electric Vehicle Production

Noble ferroalloys are often used to manufacture steel and iron. And steel is one of the most environmentally friendly materials for electric vehicles. Modern steel solutions provide options for performance improvement and weight reduction, while steel production emits relatively few pollutants. Steel is also fully recyclable, accelerating the use of steel in electric vehicles even more. Electric vehicle production and adoption are expected to rise around the world. According to Invest India, the Indian EV market is expected to grow at a CAGR of 44 percent between 2020 and 2027, with annual sales reaching 6.34 million units by 2027. California has mandated that by 2035, all new passenger vehicles sold in the state by 100% electric. The recently unveiled American Jobs Plan proposes a total of US$174 billion in incentives, rebates, and investments to promote the production and adoption of electric vehicles. GM has also proposed that all diesel and gasoline-powered cars be phased out by 2035, with the entire fleet being converted to electric vehicles. As a result, it is expected that a gradual shift toward electric vehicles will boost steel demand, propelling the noble ferroalloys market forward. 

Increasing Demand for Aircrafts

Noble ferroalloys are often used to make superalloys. And superalloys are an important group of high-temperature materials used in the hottest sections of jet and rocket engines where temperatures reach 1200–1400C. Superalloys have various applications in aircrafts such as turbine blades, turbine discs, aero-engines, aero landing gear, and more to provide strength, toughness, and durability at high temperatures. Various regions are experiencing an increase in aircraft demand. For example, Boeing predicted in November 2020 that China's airlines would spend US$1.4 trillion on 8,600 new planes and US$1.7 trillion on commercial aviation services over the next 20 years. According to Boeing's current business forecast, the Middle East will require 2,520 planes by 2030. India is also expected to drive demand for 2,300 aircraft worth US$320 billion over the next 20 years, according to Boeing. According to Boeing, 8,995 aircraft fleets were delivered in North America in 2020, with 10,610 fleets expected by 2039. As the number of aircraft produced grows, so will demand superalloys, propelling the noble ferroalloys market growth during the forecast period.

Noble Ferroalloys Market Challenges

Instability in Steel Industry

The growth and decline of the global ferroalloys market are directly linked with the ups and downs taking place in the global steel market. As steel is the major application of noble ferroalloys, it largely influences the growth of the global noble ferroalloys market. There is uncertainty in crude steel production. For instance, according to the World Steel Association, China's total crude steel production decreased from 1,064,732 thousand tonnes in 2020 to 1,032,790 thousand tonnes in 2021. In addition, trade uncertainty, rising interest rates, and complacent financial markets have all harmed the steel market's growth. Attributing to these global scenarios, the steel demand is fluctuating. Thus, with current instability in the steel industry, fluctuations are expected to come as impediments to the growth of the noble ferroalloys market.

Noble Ferroalloys Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the noble ferroalloys market. Noble ferroalloys top 10 companies are:

1. Essel Mining & Industries Limited (EMIL)
2. D S Alloyd Pvt Ltd
3. AMG Advanced Metallurgical Group N.V.
4. Shanghai Shenjia Ferroalloys Co. Ltd.
5. LekonGermess Ltd
6. FE Mottram Ltd
7. Global Titanium Inc.
8. Nortech Ferro Alloys Pvt. Ltd.
9. Team Ferroalloys Pvt. Ltd.
10. Rama Ferro Alloys & Finance Pvt Ltd. 

Recent Developments

• In December 2021, Maithan Alloys has successfully turned on one of its two furnaces for ferroalloy production. The company also stated that commercial production will begin later this month. The other furnace, meanwhile, was expected to be turned on within the next 30 days.
• In May 2021, Maithan Alloys has announced that it will be required to pay a consideration of Rs 74.22 crore to acquire Impex Metals & Ferro Alloys (IMFAL). The goal of the acquisition was to expand the company's production capacity by 49,500 TPA of Silioco Manganese (or 70,355 TPA of Ferro Manganese).
• In January 2020, Through an insolvency process, Vedanta acquired Ferro Alloys Corporation (Facor) and its subsidiary Facor Power. Vedanta's existing steel business will benefit from the acquisition, as vertical integration of ferro manufacturing capabilities has the potential to generate significant efficiencies and help Vedanta expand its steel portfolio. 

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