Market Trends of Manganese Industry
Increasing Demand from Construction Sector
- Manganese is used in steel, as it increases hardenability and tensile strength. Over 40% of the world's steel is used in the construction sector for building applications (structural sections, reinforcing bars, sheet products, non-structural steel, and others), infrastructure, and transportation.
- Manganese also acts as a mild oxidizing agent. Steels are also used in offshore oil rigs, bridges, civil engineering and construction machines, pressure vessels, power plants, and hydroelectric plants.
- The global construction industry is estimated to be about USD 12.9 trillion by 2030, primarily driven by countries such as India, China, and the United States.
- China's construction industry looks shaky as the country is dealing with the Evergrande crisis (the company has USD 300 billion of liabilities alone as of June 2021), and a full-fledged Chinese financial crisis and the effect of recession can't be ruled out.
- In the United States, President Biden introduced a USD 2 trillion plan in 2021 to overhaul and upgrade the nation's infrastructure, into a greener industry.
- By 2025, the Indian construction market output is expected to grow on average by 7.1% each year. Additionally, the real estate industry in India is expected to reach USD 1 trillion by 2030 and contribute to 13% of the GDP.
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Asia Pacific to Dominate the Market
- Asia Pacific has dominated the market globally, owing to increasing demand from countries such as China, India, and Japan.
- With rapid urbanization, especially in developing countries, investments in new construction projects have been increasing over recent years. Asia Pacific has dominated the construction sector investments worldwide due to the growth in investments in China, India, Japan, and ASEAN countries.
- Increasing infrastructure construction activities and the entry of major players from the European Union into the lucrative market of China have further fueled the industry's expansion.
- The construction industry in India contributes about 9% of the country's GDP. 100% foreign direct investment in the construction industry in India under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions. This is expected to boost the industry in the forecast period.
- According to the National Bureau of Statistics of China, Chinese industrial production increased by about 9.6% in 2021, as compared to the previous year. Furthermore, industrial production increased by 5.0% Y-o-Y in October 2022, following an increase of 6.3% Y-o-Y in the previous month, thereby stimulating the demand for the market studied.
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