Ferro manganese is an important alloy element that is primarily used in steel production where its addition enhances the strength and wear resistance of the final product. Ferro manganese contains various grades depending on the manganese content ranging between 65%-95%. Its key application areas include production of low, medium and carbon steels for construction and infrastructure projects. The alloy finds usage in automobile, machinery, metal goods and appliances manufacturing. It improves the mechanical properties and corrosion resistance of steel grades. With growing construction activities and infrastructure developments globally, the demand for quality steel is surging thereby boosting the ferro manganese consumption.
The global Ferro Manganese Market is estimated to be valued at US$ 71 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers propelling the ferro manganese market growth is the rising steel production to meet construction needs. According to World Steel Association, global crude steel production increased from 1,895.4 million tons in 2020 to 1,966.1 million tons in 2022. Expanding construction industry particularly in developing Asian economies is spurring the demand for steel which in turn is augmenting the ferro manganese consumption. In addition, growing automotive manufacturing supported by strengthening economic conditions will further support the market expansion over the coming years. Ferro manganese requirement is rising with advancements in steel grades for high strength, wear resistance and forming applications in automotive bodies and components manufacturing.
Segment Analysis
The Ferro Manganese market can be segmented based on product type and application. By product type, the high carbon Ferro Manganese dominates the market with over 60% share as it offers better wear resistance and strength properties. It finds wide usage in steel production. The medium and low carbon variants find applications where ductility is important over strength.
PEST Analysis
Political: Ferro manganese production is dependent on manganese ore supply which is dominated by few countries like South Africa, Gabon and Australia. Any trade restrictions can impact supply.
Economic: The market is directly dependent on steel production which relies on economic growth. A recession can negatively impact demand from steel industry. However, ferro manganese is a cheaper alloying element compared to others which provides upside.
Social: Rising incomes in developing nations is increasing demand for products requiring steel like vehicles, appliances etc driving steel and eventually ferro manganese demand.
Technological: New production technologies are improving yield and reducing emissions in ferro alloy production. Advanced steelmaking techniques require new alloy formulations supporting ferro manganese usage.
Key Takeaways
The global Ferro Manganese market is expected to witness high growth over the forecast period supported by rising steel demand from construction and automotive sectors globally. The Asia Pacific region currently dominates the market and is expected to continue its lead. China accounts for over 50% of global steel production and ferro manganese consumption.
The Asia Pacific region currently accounts for around 60% market share led by China. This can be attributed to sizable steel production in the region to meet the rising domestic demand. Other major ferro manganese consumers in Asia Pacific include Japan, India and South Korea.
Key players operating in the Ferro Manganese market are Monet Group,,Tata Steel,,Gulf Manganese Corporation Limited,,Vale,,Eurasian Resources Group,,Ferroglobe,,China Minmetals Group Co., Ltd. These players are focusing on capacity expansions and new production plants to capture the growing market demand.
