Ferrous Slag Market - Forecast(2023 - 2028)

Ferrous Slag Market Overview

Ferrous Slag Market size is estimated to be US$18.4 billion in 2027 and is forecasted to grow at a CAGR of 6.1% during 2022-2027. Ferrous Slag, also called iron & steel slag is made by adding calcium silicate, silica sand, and limestone to blasting furnaces to remove impurities & other metals from iron ore to reduce metal temperatures. Slag of iron and steel also contains many abrasive particles during the smelting and purification of oxidizing pollutants including silicon, phosphorus, manganese, and sulfur. The demand for iron slag and steelmaking slag has increased mainly due to the high demand for crushed granulated slag to obtain concrete when combined with portland cement. Thus, the growth of the construction industry is one of the major factors driving the market. Increased demand for slag as cement will ultimately lead to better strength of buildings in construction projects and the acquisition of industrial strategies to promote slag as a building material will in turn enhance the market growth.

COVID-19 Impact

COVID-19 has affected the Ferrous Slag Market by decreasing production due to the closure of processing plants coupled with lowered iron ore production due to lockdown. According to the Brazil Association of Iron and Steel, more than 10% of iron ore production was affected in April 2020 when a local court suspended operations owing to workers being found to be infected due to COVID-19. According to world bank data, the global iron ore price has increased drastically since the announcement of struct lockdown due to the covid-19 pandemic. In April 2020, the price of iron ore was around US$ 84.73 per dry metric ton which has continuously increased to US$ 214.43 per dry metric ton in June of 2021. The increased prices are majorly due to reduced iron ore extraction. This has resulted in decreased iron processing leading to declined production of iron slag.

Report Coverage

The report: “Ferrous Slag Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Ferrous Slag industry.

By Form: Pellets, Rocks, Granules, Powder, and Others.
By Product Type: Iron Slag and Steel Slag.
By Process: Blast Furnace Slag ( Oxygen Furnace, Granulated Furnace, Air Cooled Furnace, Others) and Steel Making (Electric Arc Furnace, Converter Furnace, and Others)
By Sales Channel: Direct Sales Channel and Indirect Sales Channel.
By End-use Industry: Building & Construction (Hospitals & Healthcare Infrastructure, Educational Institutes, Hotels & Restaurants, Banks and Financial Institutions, Airports, Shopping Malls, Industrial Construction, Infrastructure and Others), Railways, Cement Production (Slag Cement, Asphalt Cement, Cement Clinker, Concrete, Others) Agriculture (Fertilizer, Soil treatment, Others), Mineral Wool Manufacturing, Glass manufacturing, Waste Treatment, and others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• The Ferrous Slag is expected to grow at an optimistic rate owing to the increased consumption of Ferrous Slags in various end-use industries.
• Volatility in raw material prices due to covid-19 has affected the market negatively during 2020 and 2021. However, the market has gained momentum owing to increased demand from agriculture, and glass manufacturing industries.
• North America holds the major share in the Ferrous Slag Market due to higher investments in urban infrastructure coupled with the presence of local steel and iron processors.

Figure: North America Ferrous Slag Market Revenue, 2021-2027 (US$ Billion)

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Ferrous Slag Market Segment Analysis – By Product Type

Iron slag held the largest share in the Ferrous Slag Market in 2021 and is expected to grow at a CAGR of 5.5% during the forecast period. Iron slag is widely used in the cement and construction industries. Demand for iron slag is expected to increase in line with developments in the building and construction industry. The rise in iron production has led to an increase in the supply of iron slag which has helped market growth. Iron slag is also used in cement manufacture due to its high strength and durability with strong chemical resistance. For an instance, according to US Geology Survey, the total volume of cement production was estimated to be 4.1 billion metric tons in 2018 and has increased to 4.2 Billion metric tons in 2020. Increased demand for cement is expected to boost the demand for iron slag at the manufacturer's side. Moreover, increased investment in infrastructure developments such as road and bridges construction across the globe is expected to drive the market for iron slag products in the forecasted period.

Ferrous Slag Market Segment Analysis – By End-use Industry

The building and construction industry segment held the largest share of around 35% in the Ferrous Slag Market in 2021 and is expected to grow at a CAGR of 5.3% during the forecast period. Building & construction is one of the major end-use industries consuming ferrous slag products. Building & construction include hospitals & healthcare infrastructure, educational institutes, hotels & restaurants, banks and financial institutions, airports, shopping malls, industrial construction, infrastructure and others. Ferrous slag is primary used as concrete fill, pavement material, and backing material in the construction of infrastructure projects. Hence, increased infrastructure developments across the globe, especially, in emerging economies will drive the market. For an instance, according to the Ministry of Road Transport and Highways of India, the total length of roads construction in India was around 9,829 Kilometers in 2018 and has increased to 10,855 Kilometers in 2019, and again increased to 13,300 kilometers in 2021. The continuous increase of investments in road construction from the government is one of the major factors expected to drive the Ferrous Slag Market in the forecasted period.

Ferrous Slag Market Segment Analysis – By Geography

North America has dominated the market in terms of revenue by 2021. In terms of revenue, the region held the largest share of more than 25% in the Ferrous Slag Market in 2021, owing to fast-growing end-use industries in recent years. The North American market is estimated to play a prominent role in the global iron and steel slag market due to the growing construction industry coupled with population growth. As the demand for construction increases with urbanization growth in the region, the demand for ferrous slag is expected to increase. According to Bank of America, the total value of city investment infrastructure in the U.S. is estimated to be US$ 184 Billion from 2016 to 2021. In add-on, according to US Census Bureau, the total public construction spending on commercial projects in the U.S. was around US$ 3.62 Billion in 2018 which has increased to US$ 4.09 Billion in 2020. Also, rising demand from developing economies such as India, China and other Asia Pacific countries will add to the market expansion. This can be attributed to the rising infrastructural development activities and growing awareness among consumers regarding ferrous slag. Europe is also seeing developments in both the commercial and non-commercial construction sectors leading to an increase in the use of iron and steel which further drives the market growth. The presence of a large number of international and domestic producers in South America is expected to boost the growth of market revenue in the region.

Ferrous Slag Market Drivers

Increased demand from Agriculture Industry

Ferrous slag is used in end-to-end industries such as building & construction, railways, cement production, glass manufacture, wastewater treatment and more. Increased demand for steel and iron slag in agriculture to produce fertilizers, soil treatment products, and others is expected to drive the market growth in the forecasted period. The global consumption of fertilizers from 2010 to 2020 has witnessed continuous growth. For an instance, according to Trade statistics for international business development, the export value of fertilizers was around 48.5 billion in 2016 and has increased to US$55.65 in 2020. The continuous demand for fertilizers in the agriculture sector especially in agri-based developing countries such as India, china, japan, and South Africa is expected to drive the market for fertilizers. This will in turn boost the market for ferrous slag to manufacture fertilizers at the manufacturer’s end. The aforementioned demand for fertilizers in agriculture is expected to drive the market growth in the forecasted period.

Expanding Demand from Glass Manufacturing Sector

The glass manufacturing industry is one of the major consumers of ferrous slag to manufacture various types of glass. Increased demand for various glass products including containers, glassware, and others will boost the demand for ferrous slag leading to a market surge. Glass is one of the most luxurious decorative materials in the world. Glass products are applicable on a wide scale including packaging, construction, communications, technology, and others. According to International Trade statistics, the total import value of glassware worldwide was around US$ 24.4 Billion in 2017 and has spiked to US$27.5 Billion in 2019. The increase in glass applications in electronics and telecommunications greatly increases the growth of the industry. Increased use of glass products across various industry verticals will further boost the demand for ferrous slag to manufacture glass products. 

Ferrous Slag Market Challenges

Volatility in Raw Material Prices

Volatility in raw material prices are among the major restraint that backfoot the Ferrous Slag Market. Raw material prices and supply of raw materials are the important factors that influence the manufacturers to determine the production cost of ferrous slag. Iron and steel extracted from ore is a major raw material to manufacture ferrous slag. Hence volatility in the price coupled with uncertainties in the supply of these materials will hamper the market growth. According to world bank data, the global average price of iron ore was around US$207.72 per dry metric ton in May 2021 which increased to US$214.43 dry metric ton in June 2021, again the prices started declining to US$96.24 per dry metric ton in November 2021 which has again gained momentum reaching to US$132.53 per dry metric ton in January 2022. The random developments in prices will alter the supply and demand drastically leading to decreased Ferrous Slag Market growth over a period of time.

Ferrous Slag Market Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Ferrous Slag Market. Global Ferrous Slag Market top 10 companies are:

Steel Authority of India Limited

1. Nippon Steel
2. Edw. C. Levy Co.
3. Stein, Inc.
4. JFE Steel Corporation
5. Arcelor Mittal
6. TATA Steel
7. Harsco Corporation
8. TMS International
9. JSW Steel.

Recent Developments

• In November 2021, Nippon Steel has inaugurated its new steel production plant by closing a joint venture with ArcelorMittal Nippon Steel India The expansion will make the company distribute the products at competitive prices in the region.
• In February 2021, Tata Steel has expanded its production capacity the steel to 40 million tonnes. The expansion in Angul, Kalinganagar and Jamshedpur of India is expected to boost the production capacity from 20 million tonnes per annum to 40 million tonnes per annum.
• In June 2019, JFE Steel has partnered with CSIRO, Australia’s national science research agency to collaborate on Long-term Research including research on the granulation, and characteristics of new ore types, and the high-temperature behavior of burden materials in blast furnaces.

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