SIC 1061 Ferroalloy Ores, Except Vanadium

Encyclopedia of American Industries | 2005 | Copyright

SIC 1061
FERROALLOY ORES, EXCEPT VANADIUM

This category covers establishments primarily engaged in mining, milling, or otherwise preparing ferroalloy ores, except vanadium. The mining of manganiferous ores valued chiefly for their iron content is classified in SIC 1011: Iron Ores. Establishments primarily engaged in mining vanadium ore are classified in SIC 1094: Uranium-Radium-Vanadium Ores, and those mining titanium ore are classified in SIC 1099: Miscellaneous Metal Ores, Not Elsewhere Classified. The ferroalloy classification includes the following ores: chromite, chromium, cobalt, columbite, ferberite, huebnerite, manganese, manganite, molybdenite, molybdenum, molybdite, nickel, psilomelane, pyrolusite, rhodochrosite, scheelite, tantalite, tantalum, tungsten, wolframite, and wulfenite. While production and consumption of particular ores can vary as much as their names, industry-wide trends tend to influence ferroalloys as an overall group of ores serving related applications responding to similar market forces.

NAICS Code(s)

212234 (Copper Ore and Nickel Ore Mining)

212299 (Other Metal Ore Mining)

Industry Snapshot

The ferroalloy industry is serviced by dozens of international mining companies, often with special subsidiaries responsible for specific alloys. As ferroalloys are primarily used in the production of steel, the state of worldwide steel production impacts that of the ferroalloy industry. Ferroalloys serve three main functions in steel: they help eliminate undesired elements such as oxygen and sulfur; they impart special characteristics, such as heat- and corrosion-resistance and strength; and they neutralize undesirable elements in the steel. The leading ferroalloy producers are China, South Africa, Ukraine, Kazakhstan, Russia, and Norway.

Starting in 1995, steel production began a decline that has affected prices and demand for many ferroalloys. By 1997 the steel market appeared to have settled down and prices were on the verge of rising, which in turn could have had a domino effect on the ferroalloys industries. However, the U.S. economic recession of the early 2000s pushed both specialty steel and stainless steel consumption down 17 percent in 2001, according to the Specialty Steel Industry of North America. U.S. ferroalloy production declined 10 percent in 2002. Exports declined 18 percent and imports increased 11 percent, according to the U.S. Geological Survey.

From 1989 onward, ferroalloys underwent substantial market decline, largely spurred by a decline in steel production in the United States and other Western nations. Several economic factors placed continued strain on steel—repercussions from the oversupply and price boom of the late 1980s, a flood of exports from Commonwealth of Independent States (CIS) and China, and...

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