Ferro manganese is an important alloy element which is used as a deoxidizing agent and offers excellent toughness and hardenability. It finds major application in steel production and construction industry owing to its strength and heat resistance properties.
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 from 2024 to 2031.
Ferro manganese is an alloy of manganese and iron that is primarily used to remove oxygen and sulfur impurities during steel production. It improves the hardness, stiffness and tensile strength of steel while also lowering its melting point. Ferro manganese contains 65-90% of manganese, making it ideal for modifying steel properties. With rapid urbanization and infrastructure development taking place globally, the demand for high quality steel from construction sector is surging. This is anticipated to boost consumption of ferro manganese over the coming years.
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 growing infrastructure and construction sectors have augmented the demand for steel which in turn is fueling consumption of fFerro Manganese Market Demand Governments across countries are allocating higher budgets for highways, bridges, airports, metro rails etc. This is creating a healthy demand environment for ferro manganese producers.
Technological advancements in steelmaking such as ladle metallurgy furnace and argon oxygen decarburization vessels have improved the quality of steel. Modern steel varieties require optimized manganese content for best structural and mechanical properties. This is projected to drive innovations in ferro manganese production process over the next decade.
Market Trends
Electric vehicle adoption is gathering pace worldwide in view of stringent emission norms. EV manufacturers use specialized steel grades with excellent strength to weight ratio in automobile body, chassis and powertrain. Use of high manganese content ferro will grow accordingly to match new steel specifications for electric vehicles.
Developing nations in Asia Pacific and Latin America are witnessing a construction boom on back of rising income levels, rapid urbanization and smart city initiatives by governments. This widespread construction activity will bolster the consumption of construction-grade steel and ferro manganese supporting alloys in these regions.
Market Opportunities
Wind and solar power industries are expanding massively to meet renewable energy targets of various countries. Specialized steel is required in wind turbine components and solar panel mounting structures. Ferro manganese producers can establish collaborations with equipment manufacturers in renewable sector.
With the aim to reduce dependence on imports, several nations including India have launched production linked incentive schemes to promote local steel and allied industries. This presents lucrative growth prospects for ferro manganese players setting up domestic manufacturing facilities.
Impact of COVID-19 on Ferro Manganese Market Growth
The COVID-19 pandemic has significantly impacted the growth of the global ferro manganese market. During the initial outbreak of the virus, production facilities and foundries involved in the manufacturing of ferro manganese had to temporarily shut down or significantly reduce their operations to comply with lockdown and social distancing norms implemented globally to contain the spread of the virus. This disrupted the supply chain and suspended ferro manganese supply to various end-use industries such as construction, automotive, shipbuilding, etc.
As the pandemic progressed, the demand from these end-use industries also declined sharply due to reductions in manufacturing and construction activities across the world. However, with countries easing lockdown restrictions and economic activities gradually resuming in a phased manner post Q2 2020, the ferro manganese market has started demonstrating signs of recovery. The construction and infrastructure development activities are rebounding in major economies leading to increased demand for steel and thereby ferro manganese. The manufacturers are ramping up their production capacities to cater to the rising demand. However, uncertainties around future waves of virus spread and emergence of new variants still remain a challenge and risk for the market's growth trajectory in the coming years. Ongoing vaccination drives globally are expected to support sustained economic recovery and drive the ferro manganese consumption higher over the long run.
Fastest Growing Regions for Ferro Manganese Market
In terms of value, Asia Pacific currently dominates the global ferro manganese market and is expected to remain the fastest growing regional market during the forecast period from 2024 to 2031. This is attributed to the vibrant construction and manufacturing activities taking place in major economies of the region such as China, India and Southeast Asian countries. China, being a manufacturing powerhouse, accounts for a major chunk of ferro manganese demand from its massive steel production. India is also emerging as a major consumer market with its government undertaking huge infrastructure development projects and initiatives like 'Make in India'. Asia Pacific is followed by Europe and North America as other major regional markets for ferro manganese containing steel alloys and find widespread usage in transportation, machinery and equipment manufacturing industries across these developed economies. The regions of Middle East and Africa and Latin America are anticipated to register favorable growth on account of escalating urbanization and industrialization rates in the coming years.
Geographical Regions with Highest Ferro Manganese Market Value Concentration
Asia Pacific region holds the highest value concentration for the global ferro manganese market owing to massive steel production capacities of China and other countries. China alone accounts for over 50% of the total market share in APAC region. Major ferro manganese players have established their manufacturing plants and distribution networks across Chinese provinces to capitalize on growing steel and alloy demands. Other provinces with high market concentration in terms of revenue include Shandong, Hebei, Jiangsu etc supported by their dominant steel industries. Besides China, provinces of Tamil Nadu and Gujarat in India along with states of Victoria and New South Whales in Australia possess sizeable ferro manganese market value given their prominence in respective national manufacturing output. These core Asian hubs will continue driving the global ferro manganese consumption in the future as well.
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