Published Date : Jan 04, 2016
The global ferroalloy market is witnessing an immense surge in market valuation, thanks to the increasing demand for steel across the world. The rise in the construction industry, triggered by rapid infrastructural development, in BRICS nations has also fueled the demand for ferroalloy to a great extent.
The year 2015 brought lucrative opportunities for market participants. In February 2015, Sakura Ferroalloys, a Malaysian startup in ferromanganese and silicomanganese production, revealed its plans to export Asian steel-makers, particularly in Japan, India, and Taiwan. Its ferroalloy plant in Samalaju Industrial Park, Bintulu, Sarawak has been commissioned in October, 2015 and the production is scheduled to initiate properly by July, 2016.
The unit, which boasts of a design capacity of 170 thousand mt of silicomanganese and high carbon ferromanganese per year, is expected to exceed its capacity in forthcoming years and manufacture around 107 thousand mt of high carbon ferromanganese and 67 thousand mt of silicomanganese per year. The company is a joint venture of South Africa-based Assmang, Japan-based Sumitomo Corp., and China Steel Corp of Taiwan.
The year also proved profitable for Tata Steel Ltd., the largest manufacturer of ferroalloys in India, as it gained approval for its US$27.7 mn project. Under this project, the company would be setting up two new units at its Joda-based ferroalloy plant in Keonjhar, Odisha. It will expand the current capacity of the plant, 0.0504 mt per annum, to 0.06 mt per annum.
The company’s expansion of its ferroalloys production is in the context of the increasing demand for steel in India, which is likely to reach 193 million tons per annum by the end of 2020.
Other prominent players operating in the global ferroalloy market are Ferro Alloys Corp. Ltd., Eurasian Natural Resources Corp. Plc, S.C. Feral S.R.L., Nikopol Ferroalloy Plant, China Minmetals Corp., Georgian American Alloys Inc., Shanghai Shenjia Ferroalloys Co. Ltd., Sinosteel Jilin Ferroalloy Corp. Ltd., and OM Holdings Ltd.