Ferro silicon is a critical raw material that plays a significant role in the steel industry. It is an alloy made up of iron and silicon, with varying percentages of carbon, sulfur, and other elements. Ferro silicon is used as a deoxidizer and an alloying agent in the production of steel. It helps to remove impurities from the molten steel, resulting in high-quality steel products.

The steel market is highly dependent on the supply and demand of ferro silicon. The demand for ferro silicon has been increasing over the years due to the growth of the steel industry. The steel industry is one of the largest consumers of ferro silicon, accounting for more than 80% of the total demand. The use of ferro silicon in the production of steel has increased significantly due to its ability to improve the quality of steel.

The price of ferro silicon is a significant factor that affects the steel market. The cost of ferro silicon has been increasing over the years, which has led to an increase in the price of steel products. The price of ferro silicon is affected by various factors such as demand and supply, production costs, and government policies. The increasing demand for ferro silicon has led to a shortage of supply, which has resulted in an increase in its price.

The steel market is highly competitive, and the cost of production plays a significant role in determining the price of steel products. The use of ferro silicon in the production of steel has increased the production cost, which has led to an increase in the price of steel products. The price of steel products is also affected by other factors such as labor costs, energy costs, and transportation costs.

In conclusion, ferro silicon is a critical raw material that affects the steel market. The increasing demand for ferro silicon has led to a shortage of supply, which has resulted in an increase in its price. The high cost of production due to the use of ferro silicon has led to an increase in the price of steel products. The steel industry needs to find alternative raw materials that can replace ferro silicon to reduce production costs and maintain the competitiveness of the steel market.