by Ferro manganese is a brittle, hard alloy of manganese and iron that is primarily used as a desulfurizing agent in steel production. It serves to purify molten iron by removing sulfur and oxygen from it. Sulfur and oxygen can lower the quality of steel by making it more brittle. Ferro manganese also enhances the strength and hardness of steel by adding manganese to its composition. With the increasing demand for high-quality steel from construction, manufacturing and other industries globally, the need for ferro manganese has risen significantly. The steel industry has been growing steadily over the past few years due to robust urbanization and infrastructure development activities worldwide. The global construction sector alone accounts for over 10% of steel consumption. With growing investments in building new roads, bridges, houses and commercial buildings, the demand for quality steel is ensuring steady business opportunities for the ferro manganese market.
The global Ferro Manganese Market size 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 key trends:
The rising electric arc furnace (EAF) steel production method is a key trend in the ferro manganese market. EAF utilizes significant amounts of ferromanganese in its steelmaking process as opposed to the blast furnace-basic oxygen furnace production route. EAF steel production witnessed a growth of over 5% annually between 2015-2020. This is expected to drive higher ferro manganese consumption in the coming years. EAF capacity additions are primarily taking place in the Asia Pacific region led by China and India. Furthermore, new EAF plants are also coming up in regions like the Middle East and Africa to meet growing regional steel demand. This bodes well for ferro manganese producers targeting these emerging markets.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as setting up ferro manganese production requires large capital investments and long lead times to set up manufacturing plants.
Bargaining power of buyers: The bargaining power of buyers is moderate owing to the presence of numerous buyers for ferro manganese across different end use industries. However, buyers have less influence over prices due to scarce availability of substitutes.
Bargaining power of suppliers: The bargaining power of suppliers is low as the industry is concentrated with a few major players controlling the global supply. Suppliers have limited influence over prices.
Threat of new substitutes: The threat of new substitutes is low as ferro manganese has few cost effective alternatives for use in steel production and other applications.
Competitive rivalry: The competitive rivalry is high due to presence of numerous international players operating in the market. Players compete based on capabilities, product quality, and pricing.
Key Takeaways
The global ferro manganese market is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific region currently dominates the global ferro manganese market with China being the largest producer and consumer. Presence of major steel manufacturing industries drives the growth of ferro manganese market in Asia Pacific.
Key players: Key players operating in the ferro manganese market include Monet Group,,Tata Steel,,Gulf Manganese Corporation Limited,,Vale,,Eurasian Resources Group,,Ferroglobe,,China Minmetals Group Co., Ltd.,,Eramet Group,,South32,,OM Holdings Ltd. The market is consolidated in nature with major players focusing on expansion of production capacities to cater to rising demand.
