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13 April, 2023

A complete guide to the use of Ferro Chrome in the Steel Industry

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A complete guide to the Use of Ferro Chrome in the Steel Industry

 

Ferro chrome is an essential component in the steel industry for manufacturing stainless steel to allow distinct chrome appearance and corrosion resistance. For stainless steel making, the ideal content of chromium is approximately 60% while carbon content is 0.25%. This is to prevent the stainless steel from degrading when exposed to oxygen, as chrome forms a passivation layer when it comes in contact with the oxygen molecules, thus protecting stainless steel from corrosion is important. This type of low-carbon ferrochrome is also known as ‘charge chrome’.

 

 The steel industry mainly uses 3 types of ferrochrome- low carbon ferrochrome, medium-carbon ferrochrome, and high-carbon ferrochrome. Each type is used for varied steel manufacturing purposes. Medium carbon ferrochrome has chromium content between 50-55% and 2% carbon. Both low and medium-carbon ferrochrome is primarily used for making corrosion-resistant steel, acid-resistant steel, and heat-resistant steel.

 

Whereas, high carbon ferrochrome has a typical chromium content between 60-70% and a carbon content of 4-6%. This ferrochrome has specialist applications for the manufacturing of engineering steel, ball-bearing steel, and so on. Ferrochrome is classified based on the amount of chrome and carbon content. Ferrochrome is classified based on the amount of chrome and carbon content.

 

Prospect of the ferrochrome market and its demand and supply ratio:

Owing to the huge demand for ferrochrome in the steel sector to meet the rocketing demand for construction materials, the ferrochrome market is expected to grow at a CAGR of 4.39% by 2027. Besides meeting domestic demand for ferrochrome, one of the largest challenges for the Indian ferrochrome producer is the influx of demand from neighbouring nations and other competitors.

 

While the market scope seems promising, the ultimate challenge for the Indian ferrochrome makers is to produce and sell high-quality ferrochrome at a reasonable market price. Because of strict mining regulations by the Ministry of Mining, only a few large-scale Ferrochrome producers in India like Tata Steel Mining Limited (TSML) have access to 3 rich chrome reserves in Odisha.

 

This results in low or mid-scale ferrochrome producers having no other option but to buy chrome from these merchant mines at a hefty price. This is one of the reasons behind the limited production of ferrochrome in India despite a promising market. Other factors to impact the market demand for ferrochrome besides the steel industry are growing house and infrastructure, and heavy machinery segments, construction, automobile, household appliances, and the pressure of demand these have put on the industry.

 

Steel- the key driving agent behind stainless steel production:

The steel industry is definitely the largest consumer of ferrochrome whether it is in the domestic Indian market or global. As one of the leading chromite producers in the world, which is the most important component in the manufacturing of ferrochrome, many vendors are shifting their steel manufacturing sites to India. Besides, the easy availability of raw materials, and low labour and transportation costs, are also prime factors in augmenting market growth.

 

Every core sector in India depends on each other as the steel sector relies on ferrochrome to continue producing high-quality steel products. Tata Steel Mining Limited is a pioneering ferrochrome-producing company in India trusted by the leading steel makers for quality ferrochrome to continue producing signature quality steel.