April 23, 2024
Ferro Manganese Market

Ferro Manganese Market Is Estimated To Witness High Growth Owing To Rising Steel Production

The ferro manganese market has witnessed significant growth over the past few years owing to the widespread use of ferro manganese in steel production. Ferro manganese, which is essentially manganese incorporated in iron, acts as a deoxidizing and conditioning agent when added to molten steel during steelmaking. It plays a key role in increasing strength and toughness while reducing brittleness in steel. The global steel industry is the major end-user of ferro manganese accounting for over 70% of the total ferro manganese demand worldwide. The increasing demand for construction steel and automotive steel from developing nations is fueling the growth of the steel industry and subsequently driving the ferro manganese market.

The Global ferro manganese market is estimated to be valued at US$ 81.8 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031.


Key Takeaways

Key players operating in the ferro manganese market are Saint-Gobain S.A., Momentive Performance Materials, Inc., Kineco Limited, Veplas Group, China Jushi Group Co., Ltd., Braj Binani Group, Guardian Fibre Glass.
The key opportunities in the market include rising infrastructure development activities in emerging economies of Asia Pacific and Latin America boosted by growing urbanization. Developing nations across the globe are investing heavily in transportation, power, and construction infrastructure which is driving ferro manganese consumption.
Technological advancements in Ferro Manganese Market Demand steelmaking practices and adoption of new steel grades containing higher amounts of manganese is another key growth driver for the market. Ferromanganese alloying enables production of specialized steel grades with enhanced properties.

Market Drivers

Rising steel production driven by burgeoning automotive, manufacturing and construction sectors globally is a major market driver. Steel remains the most widely used engineering and construction material owing to its high strength, ductility, versatility and recyclability. Developing Asian countries such as China, India, and countries in Southeast Asia are major consumers of construction and automotive steel. This will propel the demand for ferro manganese from the steel industry over the forecast period.
Current Challenges in Ferro Manganese Market

The Ferro Manganese market is facing several challenges currently due to fluctuations in the prices of raw materials. Price volatility of ferroalloys has made it really difficult for the manufacturers to maintain stable profit margins. Issues related to environmental pollution during the production process of Ferro Manganese have also increased compliance costs for companies. The industry is heavily dependent on China for raw material supply. Any disruption in China can negatively impact the global supply chain of Ferro Manganese. Transportation during pandemic related lockdowns also emerged as a major problem area in terms of moving finished goods as well as raw materials across borders.

SWOT Analysis

Strength: Ferro Manganese is indispensable for production of steel and finds widespread application. Strong demand from steel industry acts as a driver.
Weakness: Prices of raw materials like manganese ore are unstable which impacts producer margins. Environmental pollution during manufacturing is an issue.
Opportunity: Growth in usage of stainless steel, low carbon steel and construction applications present opportunities.
Threats: Dependence on China for raw material supply makes the industry vulnerable to disruptions there. Increasing preference for substitutes may also threaten the market.

Geographical Regions

In terms of value, Asia Pacific region accounts for the major share in the Ferro Manganese market currently. This is primarily due to the availability of raw materials and concentration of steel industry in countries like China and India. Presence of emerging economies with fast growing construction and automobile sectors also contributes to high demand.

The Middle East and Africa region is expected to witness the fastest growth rate during the forecast period due to upcoming infrastructure development projects. Countries like UAE, Saudi Arabia and Egypt are expected to be at the forefront of driving future growth prospects for Ferro Manganese in MEA region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.