Have you ever wondered why there is growth in cast iron prices in China? According to historical data, the high trajectory trend of cast iron from China was made possible because of the pandemic during the second half of 2020.
Forecast on Prices
The conflict between the European nations has also backed the continuous rise of iron ore prices. The COVID distractions, political tensions between Russia and other countries, market demand, and inflation are the factors that contributed to the growth of iron ore prices in the iron ore market. Even the profit margins of major companies have declined.
We believe this will continue to rise if the geopolitical issues and country restrictions due to the pandemic have not yet been lifted. Export duties and the trade industry in China will not be able to continue.
Aside from that, the approximate prices of cast iron will depend on the casting material you need.
How Chinese Steel Mills Identify the Prices
Whether cast iron is needed at home or for industrial machinery, the prices stay the same and will be cast depending on your needs. Here are the other factors that may affect its spot price aside from weight and material requirement.
How complex the casting structure is. If the casting that needs to be done is simple, it has less cost.
The size of the request. Iron ore is the primary raw material needed in the production of cast iron. However, given the current situation, the forecast for the economy, and the iron ore prices, even the smallest casting may be pretty expensive.
The trade industry between China and other countries may also affect the supply of iron ore, which can make a large output more expensive.
When you demand a special steel request. If there is particular iron ore, relevant materials needed, or a required strength of the cast iron, it will be relatively expensive. The decline of the stocks in a company’s inventory may slow down production.
Special steel prices are applied on top of the average prices. But if you choose to use scrap materials, of course, the price of the steel output will be lower.
The current steel market can affect the demand for cast iron. Usually, if more consumers need cast iron, the cast iron price is relatively lower because there is enough iron ore on the supply side. The prices may go higher if the production volumes decline.
However, if there is a balance between the supply and demand from manufacturing companies and buyers, the average prices can be retained.
Iron Ore Prices
Take note that the exchange rate may also affect the current prices, especially labor costs and iron ore prices. The pressure on employment, trade industry, and sales can be affected by the current situation of markets in different countries like Australia, India, and Russia.
It is expected that the production volume will decline and make the iron ore prices higher.
Current Steel Prices
To give you data on the expected value of how much it may cost per kilogram in China, I have compiled the data estimates in a table here:
The prices quoted above are only rough estimates to give you an idea of how much is charged for cast iron by the Chinese steel mills today. For both 2 to 5 lb and 100 to 2ooo lb, the average price can be the same. It may change in the future, depending on the trends set by major companies. Buyers who purchase in ton can avail of a lower price in the market.
Unfortunately, it is difficult to quote for the prices that are below the specified weight above. These prices are just based on EXW prices. The iron ore prices, profit margins, production cost, government’s stimulus measures, sale period trends, surface treatment, packaging, import, export, and delivery, are not yet accounted for in these estimates.
Imports of iron ore from different countries are more expensive than iron ore sourced in China.
Exports to a Different Country
If you like to have an accurate price for a specific project, you may reach out through the contact page. The customers’ support team of a company will be able to provide you with the estimates you need according to your requirements. Purchases delivered a different country may be higher than expected.
Exports can be done, but there can be delays on the delivery.
I hope this information has given you an idea of how much your steel output will cost. You can focus on your financial capability in buying cast iron. A forecast can also help you predict whether the price will decline or it will go much higher.
