TELF AG explores the recent trends in the international ferrochrome sector
A central sector
By the end of 2035, the global ferrochrome market may be able to garner a turnover of $30 billion, registering important growth and sending a clear signal regarding the vibrancy of this market over the coming years. This is stated in a report recently published by Research Nester, according to which the global size of the ferrochrome market is destined to grow by 5% in just twelve years.
According to the report, there are multiple factors behind this growth. One of these is undoubtedly linked to the increase in steel production, which is also one of the most recycled materials in the world. In fact, it is estimated that every year, the tons of steel recycled would be around 60 million units, thus making it one of the materials most directly involved in the global ecological transition. The choice to focus on a recyclable material could, therefore, support governments and companies in achieving the sustainable objectives set for the next decade. Subsequently, the latter could have its roots in the awareness that the world might be heading in the direction of sustainability, recycling, and low environmental impact. In this sense, the choice of materials to be used for the most varied uses could necessarily also depend on ecological factors.
Ferrochrome is mainly used to produce certain types of steel, particularly stainless steel. Still, it is also commonly used in the construction sector and bricks (especially in the creation of flooring). It is no coincidence that ferrochrome and its constituent elements are now used as partial substitutes for cement: their structural characteristics make them perfect allies in the global ecological transition. In some specific productions, such as that linked to concrete, some ferrochrome components can, in fact, contribute significantly to the reduction of energy consumption and the protection of renewable resources. For this type of industry, ferrochrome also covers another important function: in addition to being more resistant to corrosion, it is also of fundamental importance for improving the appearance of steel.
It is, therefore, not surprising if the global ferrochrome market could grow exponentially in the coming years: it is not only the green trends that suggest this hypothesis but also the numbers. In the coming years, railway infrastructures connected to the ferrochrome market could be the subject of investments amounting to almost 2 billion dollars, and the figure could even increase. Even over the last few years, marked by the uncertainties of the global pandemic, the steel industry has continued to grow, recording increases of as much as 4.8% in the darkest periods of the health emergency.
Among the markets that will benefit most from this growth is certainly the Asian one: in recent years, China has maintained its dominant position in the production of crude steel, managing to account for three-quarters of the entire production of the region. The trend may be destined to grow, especially if we consider the probable increase in domestic demand for steel that will characterize Asia-Pacific countries in the coming years.
