The steel industry accounts for approximately 90% of the world's vanadium consumption. Ferrovanadium is used in conventional low-alloy steel for grain refinement, increasing steel strength and suppressing ageing effects. In alloy structural steel, grain refinement increases the strength and toughness of the steel. When vanadium is used in combination with chromium or manganese in spring steel, it increases the elastic limit of steel and improves the quality of steel. In tool steel, the main purpose is to refine the structure and grain size of the steel, improve tempering stability, enhance the effect of secondary hardening and improve wear resistance.

In addition, ferrovanadium hardens the material, increasing its wear resistance and extending tool life. Ferrovanadium also plays a useful role in heat-resistant and hydrogen-resistant steels. The addition of vanadium to cast iron promotes the formation of pearlite through the formation of carbides, stabilises cementite, and the shape of graphite particles becomes fine and uniform, refining the grain size of the matrix, thereby increasing the hardness, tensile strength and wear resistance of the casting.