Ferro alloys demand likely to grow at 7-8% CAGR in India: Report

India's ferro alloys demand is expected to grow at a CAGR of 7-8 per cent over the next five years, driven by higher steel production, according to markets research firm BigMint.

At present, the demand of ferro alloys -- used to add various properties to steel -- in India is over 4 million tonnes, BigMint CEO Dhruv Goel said on Wednesday.

Ferro alloys like silico manganese and ferro chrome, etc, act as deoxidisers and alloying agents, improving steel's properties like hardness, strength, corrosion resistance, and wear resistance, he said.

The domestic ferro alloys capacity stands around 7.5 million tonnes, while the production is at 6 million tonnes, of which around 2 million tonnes are exported, the industry expert said at the '5th International Ferroy Alloys Conference 2025', organised by Indian Ferro Alloy Producers' Association (IFAPA).

"India's ferro alloys industry has immense potential as the demand will continue to grow at 7-8 per cent CAGR till FY2030," Goel said, addressing a gathering of about 600 delegates, including government officials and international representatives.

The demand for ferro alloys will be driven by the domestic steel industry, which is on a growth trajectory in India.

The government aims to scale up steel making capacity to 300 million tonne by 2030 from the present level of 200 million tonnes, he told PTI on the sidelines of the event.

In line with the growth of steel output and demand, the requirement of various ferro alloys will continue to grow, Goel said.

High-end steel grades are used in sectors like automobiles, defence, aviation, capital goods.