Silico Manganese Market Size, Share & Trends Analysis Report By Product (Low Carbon, Medium Carbon), By Application (Carbon Steel, Cast Iron, Alloy Steel), By Region, And Segment Forecasts, 2022 - 2033

Report Overview

The global silico manganese market size was valued at USD 26.74 billion in 2021 and is estimated to expand at a compounded annual growth rate (CAGR) of 6.5% in terms of revenue from 2022 to 2033.Rising demand for steel products in the construction & infrastructure industry is anticipated to drive the market growth over the forecast period. Silico manganese is used in steel manufacturing to improve its properties such as strength, ductility, and corrosion resistance. It is also used in refining, deoxidizing, modification, and control of nonmetallic inclusions. Thus, rising production and consumption of steel are likely to have a positive impact on market growth. Over the course of the projected period, it is anticipated that rising investments in steel production facilities would increase demand for silico manganese in the U.S. For instance, by the end of 2023, a sum of around USD 16.00 billion is anticipated to be invested in the U.S. steel industry for modernizing, decarbonizing, and electrifying manufacturing facilities.

Also, in February 2022, United States Steel Corporation announced that it is going to invest USD 3.00 billion in the development of an advanced steel mill in Arkansas. Two electric arc furnaces with an annual production capacity of 3.0 million tons are anticipated to be included in the new production facility.

In addition, rising investments in residential and non-residential construction projects are anticipated to increase steel demand in the U.S., which is therefore anticipated to positively impact the silico manganese industry across the forecast period. For instance, in April 2022, Google announced its plan to invest USD 9.5 billion in the construction of its data centers and offices across the U.S. The company is investing in Virginia, Oklahoma, Tennessee, Boulder, Pittsburgh, Cambridge, and Austin.

It has been observed that investments in the aluminum industry are growing. For instance, in February 2022, Volvo Cars announced about an investment of USD 1.1 billion in aluminum mega castings in its Torslanda production plant in Sweden, to make the production process less complex and reduce the overall environmental footprint. Consequently, this steady preference change from steel to aluminum has negatively impacted the profit margins of steel foundries serving the automotive industry.

Product Insights

Low carbon accounted for more than 33.0% of the revenue share in 2021 of the global market. Low-carbon silico manganese is commonly used in the production of stainless steel (SS) and other low-carbon steel grades through vacuum oxygen decarburization (VOD), argon oxygen decarburization (AOD), and Creusot-Loire Uddeholm (CLU) processes.

Increasing global production of SS is anticipated to support the segment's growth over the forecast period. For instance, the world steel association reported that global production of SS melt shops increased by 12.5% in 2021 to 58.3 kilotons from 51.8 kilotons in 2020.

High carbon is anticipated to register a growth rate of 6.6%, in terms of revenue, over the forecast period. The growth is attributed to rising investments in various industries such as construction, machinery & tool manufacturing, and kitchenware, which are expected to fuel the demand for cast iron. This, in turn, is anticipated to positively influence segment growth across the forecast period.

For instance, in April 2021, Milwaukee Tool, a U.S.-based manufacturer, developer, and seller of power tools, announced a plan to expand its presence in the country by opening a manufacturing facility in Grenada, Mississippi in the U.S. that is projected to start operations by late 2022.

Application Insights

Carbon steel accounted for a revenue share of more than 32.0% of the global market in 2021. Due to its high strength, the product is used in manufacturing buildings, pipeline networks, railroad tracks, and equipment parts. Rising investments in these sectors are expected to drive market growth.

For instance, in August 2022, The National Water Company of Saudi Arabia presented its plan to implement 1,429 projects totaling USD 28.7 billion over the coming years for the expansion of the nation's water distribution system. Investments in water distribution network systems are expected to boost the demand for carbon steel pipes, which, in turn, is likely to positively influence the growth of the market over the forecast period.

The SS segment is expected to register the fastest growth of 6.8% in terms of revenue, across the forecast period. Increasing penetration of electric vehicles and rising investment in the construction industry are anticipated to drive segment growth in the coming years. For instance, Tesla is utilizing cold-rolled SS in Tesla Cybertruck, a battery electric light-duty truck, for building its exterior parts as it provides structural support. Tesla will commence the production of these EV trucks by mid-2023.

Furthermore, cast iron is another vital application segment of the market. Due to its properties such as high strength, high thermal conductivity, wear resistance, and good machinability, cast iron is widely utilized in numerous industries, including automotive, machinery & tools, pipes, power generation, cookware, and railways.

Regional Insights

Asia pacific dominated the market and accounted for over 73.0% share of global revenue in 2021. The dominance of the market is attributed to the investments made in various infrastructural development projects by the countries to revive their economy post the pandemic era.

Over the forecast period, the Middle East & Africa is anticipated to register a CAGR of 5.8%, in terms of revenue. This growth is attributed to increasing investment by the private players to boost steel production in the region. In January 2022, Ezz Steel, Egypt announced its plan to establish a second melt shop worth EGP 3 billion (~USD 154.4 million). This is likely to become fully operational by 2023.

Central & South America is likely to witness a CAGR of 4.9%, in terms of revenue, over the forecast period. The demand for steel in the region is anticipated to increase as a result of investments in oil and gas projects, which are anticipated to boost the growth of the silico manganese market over the forecast period.

For instance, in September 2022, YPF, Argentina’s state oil company, and Petroliam Nasional Berhad (PETRONAS), an oil & gas company based in Malaysia, entered into an agreement to build an LNG plant and a pipeline network in Vaca Muerta, Argentina. The project’s initial investment is worth USD 10 billion.

Key Companies & Market Share Insights

The market is competitive with the presence of numerous players worldwide. Rising investments for capacity expansion by steel producers are expected to further drive the product demand over the forecast period. In addition, the manufacturers of silico manganese engage in mergers & acquisitions to stay ahead of the competition.

For instance, in 2021, Vinay Alloy Steels Pvt. Ltd., a producer of ferroalloys, decided to invest USD 270 million to set up a high-carbon ferro manganese production project in Nagpur, Maharashtra, India. The project involves the installation of a submerged arc furnace with a 2*6 mega volt ampere capacity for the production of silico manganese, pig iron, and ferrosilicon. Some prominent players in the global silico manganese market include:

• Brahm Group

• EMCO (Bahrain Ferro Alloys BSC)

• Eramet

• Ferroglobe

• NIPPON DENKO CO., LTD.

• OM Holdings Ltd.

• Sabayek

• SAKURA FERROALLOYS

• Steelforce

• Tata Steel

Silico Manganese Market Report Scope

Global Silico Manganese Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2033. For this study, Grand View Research has segmented the global silico manganese market report based on product, application, and region:

• Product Outlook (Volume, Kil0tons; Revenue, USD Million, 2017 - 2033)

  • Low Carbon

  • Medium Carbon

  • High Carbon

• Application Outlook (Volume, Kil0tons; Revenue, USD Million, 2017 - 2033)

  • Carbon Steel

  • Stainless Steel

  • Alloy Steel

  • Cast Iron

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2017 - 2033)

  • North America

    • U.S.

  • Europe

    • Germany

    • Turkey

    • Italy

  • Asia Pacific

    • Japan

    • South Korea

    • Taiwan

    • Vietnam

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Oman

    • Saudi Arabia

    • UAE

    • Bahrain

    • Kuwait

    • Qatar

    • Iran