SILICON METAL MARKET ANALYSIS

Regional Analysis

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North America has dominated the global silicon metal market for many decades owing to well-established manufacturing clusters in the region. This region is expected to account for 34.6% of the market share in 2024. The U.S. is the largest producer of silicon metal in the world with major production facilities located in the states of Alabama and Washington. Strong domestic demand from industries such as aluminum, chemicals, semiconductors, and solar has allowed the region to continually expand its production capacity. With abundant reserves of quartzite, a key input in silicon metal production, North America also enjoys secure supply of raw materials. Moreover, the region is a leader in technology and innovation which allows manufacturers to adopt advanced production technologies and operate with high yields. Proximity to end-use markets further enhances North America's position as a preferred exporter.

The Asia Pacific region has emerged as the fastest growing regional market. China, in particular, has witnessed exponential growth in the demand for silicon metal driven primarily by its mammoth secondary aluminum industry. With over 250 aluminum smelters across 30 provinces, China accounts for more than half of the global aluminum production. Rapid industrialization, infrastructure development, and government initiatives to promote new energy industries have motivated domestic silicon metal producers to add significant new capacities over the last decade. The falling production costs, aided by low labor and land prices in the region have attracted global investors to set up manufacturing facilities. Aggressive expansion strategies by Chinese manufacturers are positioning the country to become a key global supplier. Export markets in Southeast Asia and South Korea are adding further momentum to the industry's growth in the Asia Pacific region.