The Hidden Champion of the Metallurgical Industry：ferro silicon 72%

72% Ferrosilicon Alloy: The "Hidden Champion" of the Metallurgical Industry

I. The Importance of 72% Ferrosilicon: The "Blood" of the Steel Industry

72% ferrosilicon (FeSi72) is an iron-based alloy with a silicon content between 72% and 80%, an indispensable basic material in the metallurgical industry. It plays a core role in steel smelting, casting, and alloy manufacturing, and is hailed as an "industrial vitamin."

**Key Material for Steelmaking Deoxidation and Alloying**

During steelmaking, excessive oxygen in molten steel reduces the strength and toughness of the steel. 72% ferrosilicon, as a highly efficient deoxidizer, can quickly combine with oxygen to generate silicon dioxide, improving the purity of the molten steel. Simultaneously, silicon can also be used as an alloying additive to optimize the mechanical properties of steel, such as improving corrosion resistance, wear resistance, and high-temperature strength, and is widely used in high-end products such as low-alloy structural steel, spring steel, and bearing steel.

**Inoculant in the Casting Industry**

In the production of ductile iron, 72% ferrosilicon promotes the spheroidization and precipitation of graphite, significantly improving the ductility and impact resistance of cast iron. Its low cost and stable performance make it an irreplaceable auxiliary material in casting processes.

Reducing Agent in Ferroalloy Production

72% ferrosilicon is also used in the production of low-carbon ferroalloys. Its high silicon content can replace some coke as a reducing agent, reducing energy consumption and carbon emissions.

II. Industry Status: Large Scale but Coexisting Transformation Pressures

China is the world's largest producer and consumer of ferrosilicon. As one of the mainstream products, 72% ferrosilicon's industry dynamics are closely related to macroeconomic conditions and environmental policies.

Market Size and Capacity Distribution

Production and Consumption: In 2020, China's ferrosilicon production reached 25 million tons, accounting for nearly 50% of global production, of which 72% ferrosilicon accounted for approximately 30%-40%.¹³ Over 80% of consumption is used in the steel industry, with the remainder distributed in casting, chemicals, and other fields.

Regional Concentration: Production capacity is mainly concentrated in North China (such as Inner Mongolia and Ningxia), East China (such as Jiangsu), and Central China, relying on abundant coal and silica resources and industrial foundations.

Environmental Policies Drive Technological Upgrades

Traditional ferrosilicon production relies on energy-intensive electric furnace methods, consuming approximately 8,000-9,000 kWh of electricity per ton of product and generating significant amounts of dust and waste gas. In recent years, the national "dual carbon" target has forced companies to adopt technologies such as waste heat recovery, raw material pretreatment, and closed-loop electric furnaces to reduce energy consumption and pollution. For example, some companies have reduced electricity consumption by 10%-15% by improving furnace charge ratios.

Export Dependence and International Competition

China's 72% ferrosilicon exports account for over 30% of global trade, primarily flowing to Southeast Asia, Europe, and North America. However, international market price fluctuations, anti-dumping measures (such as the EU's high tariffs on Chinese ferrosilicon), and competition from emerging production areas like Vietnam and India are squeezing industry profit margins.

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