Grey Cast Iron Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Grey Cast Iron in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Grey Cast Iron Price Trend for the Q1 of 2024

Asia

Grey cast iron prices, which were previously resilient despite China's economic uncertainties, plummeted in the first quarter since the Lunar New Year holiday, causing concerns over weakening demand and adhering an adverse impact on Australian mining stocks. The market dynamics dropped nearly by a significant margin after the Lunar holidays, pushing Australian mining stocks to four-month lows. Even Beijing's significant cut in the mortgage rate extended low support to the grey cast iron market in the first quarter of 2024.

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In China, directives indebted to local governments' delayed infrastructure projects, which further hampered the demand dynamics of grey cast iron. The manufacturing mills, therefore, opted to reduce their production rates in order to deplete existing inventories and to stabilize the falling prices of grey cast iron. Despite these headwinds, market participants anticipate a price rebound in the next quarters due to an imminent demand recovery, supported by favorable weather conditions and increased infrastructure spending.

Europe

In the European market, grey cast iron prices experienced a downward trend in the first quarter, primarily due to persistent low demand from downstream industries. The consumer sector moved with caution as the market fundamentals oscillated not only in European countries but around the globe.

The uncertainty in the market further asserted a negative impact on both local and overseas customers, due to which the major manufacturers had to reduce their production rates in the later parts of the first quarter. Downstream sectors like automotive and construction displayed lackluster demand, influenced by economic conditions and competition, further reducing grey cast iron consumption. Financial institutions ' warnings of a construction sector contraction in 2024 also contributed to the dampened demand for grey cast iron in European markets.

North America

In the first quarter of 2024, the US market witnessed a sharp decline in grey cast iron prices due to stagnant demand from downstream industries and ample feedstock supply of iron ore. Along with the firm demand from the automotive and aerospace sectors, anti-dumping duties on imports from Taiwan and China led mills to reduce their pricing quotations of grey cast iron.

The downturn in steel and iron ore prices prompted mining companies like Wyloo Metals Pty Ltd. to shut down operations, impacting production in North America. Similarly, market challenges led to project suspensions by companies like BHP Group and First Quantum Minerals Ltd. In response, the Australian Mining Association proposed a 10% production tax credit to support downstream producers. The loss of exports further dampened the trading sentiments of the region and raised the concerns of the manufacturers and traders of grey cast iron.

Analyst Insight

According to Procurement Resource, the price trend of Grey Cast Iron is expected to face southwards as the meek scenario of downstream industries and the weak outlook of the trading sector will dampen the pricing patterns of grey cast iron in the next quarters.

Grey Cast Iron Price Trend for the October - December of 2023

Asia

The Chinese grey cast iron prices got back on their feet gradually as the fourth quarter progressed. By the middle of December, the prices stood at approximately 138 USD/MT as the industrial sector looked over for a fresh start. Another factor that boosted the grey cast iron price trend was the 1 trillion Yuan sovereign debt plan as it helped in uplifting the economy of the region. Steel production in China also took an upward turn as the traders started their restocking practices due to a considerable fall in inventories.

Europe

The European countries started to induce new tariffs on the import of grey cast iron-based products from China. This move was projected to reduce the non-market benefits received by Asia and other related countries due to the rising export rates of grey cast iron. This plan also presented an indirect benefit for the domestic grey cast iron market as, given the government initiatives and slow recovery rates of the industrial region, the grey cast iron price trend experienced a slight upward momentum.

North America

The US along with the European countries-imposed tariffs on the imports of grey cast iron and its related products from China as the traders noticed that these sellers were quoting prices lower than their domestic market. These anti-dumping duties helped the regional grey cast iron market as it bloomed, and its prices rose gradually throughout the quarter. The reduction in export rates of grey cast iron from the US, however, projected some oscillations in the prices department.

Analyst Insight

According to Procurement Resource, the price trend of Grey Cast Iron are expected to face a number of uncertainties as rising anti-dumping duties, fluctuation in demand, and obtuse recovery of the global economy do not present a favorable picture for the rise in prices.

Grey Cast Iron Price Trend for the July-September of 2023

Asia

The grey cast iron market trend exhibited robust growth during the third quarter of the year 2023. The inclination in the grey cast iron price graph was attributed to several factors. There was some resistance being observed in the ore mining sector because of environmental concerns. This led to a slight tightening in the grey cast iron supplies from the very point of origin. Moreover, the shutdown in the construction sector because of the pandemic restrictions was met with a lot of pending work when the restrictions eased out, especially in China.

The rapid growth of infrastructure projects in India also provided a positive push to grey cast iron consumption dynamics. Hence, with regular supplies and bulk demands, the grey cast iron price trend flung high for the entire period of Q3’23. The general market outlook was very positive throughout the said period.

Europe

The price graph of grey cast iron remained northward facing throughout the said period. The improvement, in the end, in consumer spending capacities after some relief in inflation since the Russian war began was primarily driving these market trend in the region. Overall, bullish price growth was observed in the grey cast iron market.

North America

A steep inclination for the American grey cast iron price graph was observed in Q3’23. The grey cast iron was one of the few markets that grew rigorously amidst the serious economic turmoil in America. The bullish demands from the downstream construction sectors were the primary reason behind the price incline.

Analyst Insight

According to Procurement Resource, the current inclination in the Grey Cast Iron market is likely to continue in the coming months, given the current market fundamentals and price dynamics.

Grey Cast Iron Price Trend for the First Half of 2023

Asia

In Asia-Pacific region, the prices of grey cast iron fell gradually in the first quarter of 2023 as the inventory level of raw materials stockpiled. Amid weak demand and rising concerns over pollution, several production plants put a halt on their production rates. In the latter half of the second quarter, the trend stabilized with support from downstream casting industries. However, the first half struggled with the ample availability of the product, weak demand and falling prices of iron ores.

Europe

The market conditions of grey cast iron in Europe supported the upward trajectory of the prices. The string market dynamics were supported by the high demand and rise in new orders. The northward trend was also influenced by the limited availability of supply of grey cast iron, a halt in production activities and rising interest of buyers in this sector in the first quarter.

In the second quarter of 2023, the uprising trend of grey cast iron prices stabilized, as the demand from automotive and other related sectors remained stagnant. In addition to this, the replacement of grey cast iron with other options due to feeble production rates negatively impacted the price trend of grey cast iron.

North America

The price trend of grey cast iron in North America was flat throughout the first and second quarter of 2023. The demand for the product in the market was stable amid the financial pressure caused by the failure of two major US banks. However, the manufacturing rates surged, and the market for grey cast iron gained its momentum with enough support from the demand sector.

The construction and automotive sector were stable till the middle of second quarter but towards the last months of the second quarter, these sectors also started showing retarded demand, that negatively affected the price trend of grey cast iron.

Analyst Insight

According to Procurement Resource, the price trend of Grey Cast Iron is estimated to showcase a mixed trajectory as the demand from construction and automotive sectors is expected to be slow and high availability of grey cast iron in the global market will cast a negative shadow on its pricing fundamentals.

Procurement Resource provides latest prices of Grey Cast Iron. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.