Current status of ferro silicon and silicon manganese

Current Status of the Ferrosilicon and Silicon Manganese Industry Chain: From National Policy to Market Demand

Ferrosilicon and silicon manganese are important additives in steel production, used to improve steel quality. Silicon manganese accounts for over 90% of total ferroalloy production. Between 2000 and 2010, the ferroalloy industry experienced rapid development, benefiting from government support for the industry chain and encouragement of exports. However, since 2010, to restrict energy-intensive industries and reduce national energy consumption, the export policy for ferroalloys has shifted from encouragement to restriction, with export tariffs increasing accordingly. Currently, the export tariff for silicon manganese is maintained at 20%, for ferrosilicon at 25%, and for ferrochrome as high as 40%.

The main production methods for ferroalloys include blast furnaces, electric furnaces, ladle furnaces, oxygen converters, and vacuum resistance furnaces. Ferrosilicon and silicon manganese are mainly produced using the electric furnace method, with carbon as a reducing agent and electricity as the primary heat source.

The downstream demand for ferrosilicon and silicon manganese is primarily driven by the steel industry. Approximately 70% of ferrosilicon is used in steel, with the remaining 20% ​​used in other industries, while over 90% of silicon manganese is used in steel. Approximately 14 kg of silicon manganese and 3 to 5 kg of ferrosilicon are added per ton of steel, with the amount varying depending on the steel grade.

Currently, the development of the ferroalloy industry is primarily influenced by the steel industry. With the gradual decline in demand for rebar due to real estate factors, the demand for silicon manganese is also decreasing year by year. However, the demand for ferrosilicon is relatively stable because it is used as a deoxidizer in the steelmaking process, helping to improve the quality of steel.

The raw materials for ferrosilicon are mainly coke and steel, which are smelted into ferrosilicon alloys in an electric furnace. In the steelmaking process, ferrosilicon mainly acts as a deoxidizer, helping to deoxidize the steel. In addition, ferrosilicon can also be used as an alloying element additive in the production of low-alloy structural steel, spring steel, and electrical steel, among other products.

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