The India ferrosilicon market was valued at USD 347.7 million in 2022 and is expected to grow at a CAGR of 5.0% from 2023 to 2030. Favorable government policies and rising private investments in the domestic steel sector are key factors driving the demand for ferrosilicon (FeSi) in India. The product is extensively used as a deoxidizer in steel manufacturing, where it helps eliminate gas holes, metal oxides, and porosity, thereby improving metal fluidity.
The addition of controlled quantities of FeSi enhances the hardness, strength, elasticity, and permeability of steel, making it an essential input in steel production. According to the Indian Ferroalloys Producers’ Association, India’s bulk ferroalloy industry has an installed capacity of 5.1 million tons per year, while noble ferroalloys account for around 50,000 tons per year. Of the total 5.15 million tons of bulk ferroalloys capacity, approximately 0.25 million tons is attributed to ferrosilicon production.
The majority of ferroalloy manufacturing facilities in India are concentrated in Andhra Pradesh, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and West Bengal, primarily due to the availability of key raw materials and supporting infrastructure. In recent years, the industry has also expanded into North-Eastern India, with several small-scale units producing ferrosilicon and ferrosilicon manganese being established in Meghalaya.
Rising government investment in domestic construction and infrastructure development is expected to boost steel demand, which in turn is anticipated to positively influence the ferrosilicon market. In the Union Budget 2023–2024, the Government of India allocated INR 16,000 crores (USD 1,932.9 million) toward a new initiative aimed at developing “sustainable cities of tomorrow.” These initiatives are expected to transform multiple Indian cities by improving infrastructure, enhancing mobility, and promoting urban sustainability, thereby increasing steel consumption.
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Competitive Landscape
Key players in the India ferrosilicon market are focusing on capacity expansions, new plant establishments, and research and development initiatives to strengthen their market position. For instance, in December 2021, Shyam Metalics announced plans to expand its integrated steel-making and ferroalloy production capacity from 5.71 MTPA to 11.5 MTPA by the financial year 2025, with a total capital expenditure of INR 2,960 crore.
Some of the prominent players operating in the India ferrosilicon market include:
- Berry Alloys Ltd.
- G K Min Met Alloys Co
- Hindustan Alloys Pvt. Ltd.
- Maithan Alloys Ltd.
- Metallic Ferro Alloys LLP
- Pioneer Carbide Pvt. Ltd.
- Shyam Metalics
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Conclusion
The India ferrosilicon market is poised for steady growth through 2030, supported by strong demand from the steel industry, favorable policy support, and increasing infrastructure investments. Expansion of production capacity, geographic diversification of manufacturing facilities, and rising steel consumption driven by urban development initiatives are expected to remain key factors shaping the market’s long-term outlook.
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