The global silico manganese market is characterized by the presence of global, regional, and local players. The market is highly consolidated, with all the players competing to gain larger market shares. Stringent regulations and fluctuations in raw material prices, are the key factors that restrain global market growth. The key manufacturers of silico manganese market compete based on cost, brand identity, product quality, availability of raw materials, and reliability of the product. The vendors must provide cost-efficient and high-quality products that adhere to the requirement of end-use industries. To maintain and strengthen their market position, the key players are expanding their production capacity and regional footprint through mergers, acquisitions, and joint venture agreements. Furthermore, the increasing demand for silico manganese in the developing countries in Asia-Pacific and the Middle East is expected to offer lucrative opportunities to the manufacturers. However, concerns regarding environmental degradation, high energy costs, and fluctuating prices of manganese are expected to hinder the global market growth during the review period.
The key participants in the global silico manganese market are Tata Steel, SAIL, Jindal Steel & Power Ltd., and OM Holdings Ltd. These players hold a majority of the global market share owing to their high revenue growth, extensive product portfolio, and vast geographic footprint. Additionally, they are adopting various strategies such as expansion, investment, mergers and acquisitions, joint ventures, and R&D to gain maximum revenue and achieve long-term growth. For instance, OM Holdings Ltd., through its subsidiary, OM Materials (Sarawak) Sdn Bhd (OM Sarawak), invested around USD 5.4 million in a sinter plant project. This project is expected to increase its production capacity of manganese alloys by 250-kilo tons per annum.
According to Wantstats analysis, the global silico manganese market has a huge revenue base in Asia-Pacific and Europe. The growth of market players is dependent on market conditions, regulatory standards, and industry development. Thus, the players should focus on launching new products as per the changing market needs and try to expand their regional foothold via strategic partnerships and agreements and as well as the distributors in the regional market. Although the regional players are dominating the market, global players with small market shares also have a moderate presence.
The global silico manganese market is home to a significant number of global, regional, and local manufacturers. Most of the manufacturers operating in the market are tier-1 players. There is also the presence of some small and medium-scale manufacturers. Therefore, most of the market players are focusing on investing in capacity expansion, joint ventures, R&D, and acquisitions at their domestic and overseas facilities to meet the rising demand for silico manganese in the steel industry.
Date
Approach
Developments
April 2019
Joint Venture
OM Holdings Ltd. has executed a 51:49 joint venture with Bryah Resources in Western Australia. With this agreement, the company will have its supply of quality manganese ore for its smelter in Sarawak, Malaysia.
Nov 2018
Expansion
OM Holdings Ltd., a subsidiary OM Materials (Sarawak) Sdn Bhd (OM Sarawak), invested approximately USD 5.4 million in a sinter plant project. The proposed plant is expected to have a production capacity of 250 kilotons per annum.
May 2017
Expansion
Sakura ferroalloy commissioned an 81 MVA furnace at its manganese alloys smelting facility in Sarawak. It also commissioned the 2nd furnace in July of the same year.
December 2016
Expansion
SAIL commissioned a45 MVA submerged arc furnace from Tenova Pyromet, a high capacity furnace and melting specialist, at its Chandrapur Ferro Alloy plant. The plant has an installed production capacity of 100,000 TPA (ferromanganese) FeMn, SiMn, and medium/low carbon FeMn. This fully automated user-friendly system provides an additional level of automation to the company.
Threat of New Entrants
New entrants are players willing to enter the global silico manganese market as it is expected to witness exponential growth potential during the review period. New entrants bring in higher production capacity, willingness to achieve a larger market share, and, often, substantial resources. Taking into consideration all the past and present global market trends, forces, and scenarios, the threat of new entrants to the existing players is expected to be moderate. This can be attributed to the requirement of high capital to establish a production unit coupled with the stringent regulations associated with the mining of manganese ore. However, over the forecast period, the demand for silico manganese is expected to grow in the steel industry, owing to its wide range of applications in railroad construction and automobile body parts. Thus, in the coming years, it is expected that the entry of new players might increase owing to the healthy growth of end-use industries. However, a majority of the players are included under the tier-2 group, which holds a majority of the market share, which is expected to restrict the new entrants from achieving economies of scale.
Threat of Substitutes
The threat of substitutes in the global silico manganese market is estimated to be moderate during the forecast period. The use of low carbon silico manganese has increased significantly in the stainless steel market. However, the high cost of production for silico manganese compared to other substitutes, such as ferro silicon and ferro manganese, is likely to hamper the demand for silico manganese during the assessment period and increase the threat of substitutes.
Bargaining Power of Suppliers
The bargaining power of suppliers in the global silico manganese market is expected to be moderate during the review period. Most of the suppliers operating in the market are backward integrated, which lowers the production cost. Additionally, the raw materials such as manganese ore and silica are procured by miners from limited reserves spread across India, Brazil, China, Australia, and Ukraine. Furthermore, stringent regulations related to mining and the non-availability of high-grade manganese ore affects the bargaining power of suppliers. Many raw material suppliers offer manganese ores of varying size and purity. However, the limited supply of raw materials lowers the bargaining power of the suppliers in the global market.
Bargaining Power of Buyers
The bargaining power of buyers in the global silico manganese market is expected to be moderate during the forecast period. The presence of a large number of players offering silico manganese for automobile body applications offers buyers options to choose among the suppliers, which increases their bargaining power. The impact of brand identity on the market is moderate. However, long-term contracts with suppliers are expected to be expected to increase the switching costs, as the buyers are required to deal with the same suppliers and agree to their terms and conditions.
Intensity of Rivalry
The global silico manganese market is likely to witness a moderate intensity of rivalry. The global market is fragmented, with a significant presence of tier-2 and tier-3 players, where the tier-2 players hold a considerable share. Furthermore, low differential pricing for the same quantity of products and targeted segments and a large consumer base with established distribution networks to cater to the demand in various end-use industries are factors expected to intensify the rivalry. However, long-term contracts with buyers are expected to ease the competition to an extent.
