The global ferro manganese market has been gaining immense traction on account of increasing demand for manganese alloy in steel production. Ferro manganese or ferromanganese is a ferroalloy consisting of manganese and iron. It is widely used as a deoxidizer in steel production and impart strength and wear resistance in steel.
Ferro manganese Market Trends products effectively remove oxygen and sulphur from molten steel which enhances the fluidity and castability of steel. Ferro manganese containing around 70-80% manganese is primarily employed in carbon steel manufacturing. For applications requiring higher tensile strength and corrosion resistance in structural sections, welding electrodes and seamless pipes, alloy steel manufacturing uses ferro manganese with varying manganese content between 30-70%.
The Global Ferro Manganese Market is estimated to be valued at US$ 4.32 Billion in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the Ferro Manganese market are Vale S.A., Laxmi Group, Xinxing Heavy Minerals, Gulf Manganese Corp, Anglo American, BHP Billiton, Tata Steel, Eramet SA.
The growing demand for steel from end-use industries such as construction, automotive, machinery, etc. is driving the consumption of Ferro Manganese Companies enhances the strength, hardness and wear resistance properties of steel which is crucial for infrastructure development and automobile manufacturing.
Owing to rampant industrialization and urbanization in Asia Pacific region, the global ferro manganese producers are expanding their production capacities in China, India and other Southeast Asian countries. Establishing manufacturing plants in proximity to growing steel mills ensures just-in-time delivery and reduced dependency on imports.
Market Key Trends
Enhancing steel production capacities globally through brownfield and greenfield projects is one of the major trends being observed in the ferro manganese market. Several developing nations are investing heavily in their domestic steel industries to fulfill the rising steel demand from construction and manufacturing sectors. For example, capacity expansion initiatives by China, India, Indonesia aims to augment the availability of high grade ferro manganese for alloy steel production. This bodes well for the growth of ferro manganese consumption over the forecast period.
Porter’s Analysis
Threat of new entrants: Entry barriers are moderate due to technology and capital requirements for production. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated product offerings. Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of raw material sources. Threat of new substitutes: Substitution threat is moderate as ferro alloys have applications as metal additives and substitutes offer performance advantages. Competitive rivalry: Intense competition due to established players and undifferentiated products.
Geographical Regions
China accounted for over 40% of the global ferro manganese market share in terms of value in 2020 due to large production and consumption of steel. India and Japan are other major regions concentrated for ferro manganese due to robust steel industries.
Southeast Asia is projected to be the fastest growing region during the forecast period due to rising steel demand from construction and infrastructure sectors. Countries like Vietnam, Indonesia, and Malaysia are witnessing higher electric arc furnace based steel production requiring ferro manganese as an additive.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)