Although Ferro Manganese and Silicon Manganese are also bulk ferroalloy products and have an important share in global steel production, Ferrosilicon still plays the leading role in the steel plant deoxidation system.

Next, we will analyze the 2025 ferrosilicon market situation and the outlook for 2026 in this article.

1. Global Ferrosilicon Market Size in 2025

According to Fortune Business Insights, the global ferrosilicon market size in 2025 is around USD 11.7–12.2 billion.

The long-term growth rate is about 2.5%–3.1% per year.

This shows one clear fact:

? Ferrosilicon is not a fast-growth product.
? It is a stable basic alloy for the global steel industry.

Asia-Pacific remains the largest market, with more than 60% of total demand. India and Southeast Asia continue to grow.

2. 2025 Ferrosilicon Market Trend: Stable but Under Pressure

Supply Situation

Global capacity looks large on paper.
But real supply depends on:

• Electricity cost

• Environmental policy

• Logistics stability

• Geopolitical risks

There is a big difference between installed capacity and effective operating capacity.

For example:

• Norway and Iceland use hydropower. Production is stable and low carbon.

• China and India rely more on coal power. Costs change with coal price.

• CIS countries face export and insurance limits.

Because of this, global prices do not always follow Chinese domestic prices.

Price Trend in 2025

• Global supply remains relatively loose.

• Steel demand recovery is not strong.

• Buyers are cautious.

As a result, prices in 2025 stayed mostly in a range-bound market.
No strong upward cycle appeared.

3. Key Structural Changes in 2025

?. Effective Capacity Becomes More Important

The market no longer looks only at total capacity.
It looks at:

Can factories run?
Is electricity affordable?
Is export logistics stable?

This explains why local supply shortages can happen even when global capacity seems high.

?. India: Growth and Competition

India is both:

• A growing consumer

• A fast-expanding producer

If India becomes more self-sufficient, it may compete in:

• Middle East

• Southeast Asia

This could increase price competition in 2026.

?. Green Ferrosilicon and Carbon Policy

The European Commission is pushing the Carbon Border Adjustment Mechanism (CBAM).

In the future:

• Buyers in Europe must report carbon emissions.

• High-carbon ferrosilicon may face extra cost.

• Low-carbon ferrosilicon may gain premium pricing.

This creates a new market split:

? Low-carbon ferrosilicon (premium)
? Standard coal-based ferrosilicon (price competition)

Carbon cost may become more important than simple supply and demand.

4. 2026 Ferrosilicon Market Outlook

Market Size

The global market may grow to USD 12.5–14 billion in 2026.

Growth remains moderate, not explosive.

Supply Outlook

• Global capacity utilization may improve slightly.

• Structural oversupply still exists.

• China remains the largest supply risk factor.

If China tightens energy or environmental policy in Inner Mongolia or Ningxia, global supply could quickly tighten.

China remains the biggest market variable.

Energy Cost Impact

Ferrosilicon is electricity-intensive.

If coal prices fall:

• China and India production cost will drop.

• Export offers may become more competitive.

• Global price center may move lower.

If power cost rises:

• Price floor will move up.

Energy remains the main cost driver.

Demand Outlook

Steel production is the main demand driver.

Risk factors for 2026:

• Weak global infrastructure spending

• Slow property market recovery

• Higher share of Electric Arc Furnace (EAF), which may use slightly less ferrosilicon per ton

Demand growth may stay slow.

5. Regional Trend in 2026

Asia (India and Southeast Asia)

• Strongest demand growth area

• Possible new export competition from India

Europe

• High energy cost

• Strong environmental rules

• Increasing demand for low-carbon alloys

Middle East and Africa

• Import dependent

• Very price sensitive

• Purchase timing linked to global price movement

Final Conclusion

2025 Summary

? Global market around USD 12 billion
? Supply relatively loose
? Prices stable but weak
? Structural imbalance remains

2026 Outlook

? Moderate market growth
? No strong supercycle expected
? Clear split between green and standard ferrosilicon
? Regional price differences may increase

Key Industry Trend

The opportunity in 2026 is not explosive demand.

It is:

• Capturing regional price gaps

• Securing stable supply

• Positioning low-carbon ferrosilicon

• Managing energy cost risks

The global ferrosilicon market shows a clear pattern:

Stable total size, but structural differentiation.

For steel mills and alloy traders, strategy will be more important than short-term speculation.