Mixed Construction and Automotive Trends Keep Global Grey Cast Iron Market in Balance

Mixed Construction and Automotive Trends Keep Global Grey Cast Iron Market in Balance

Meyer Berger 20-Aug-2025

In early August 2025, Grey Cast Iron prices remained stable in both Germany and China due to balanced market conditions, despite mixed demand. Construction showed weakness in China, while automotive demand provided partial support. Germany's market stability reflected seasonal dynamics and steady supply levels.

In the first week of August 2025, the Grey Cast Iron market exhibited opposing trends in supply and demand. Weakness in the property sector in China focused attention on clearing inventories rather than new development, diminishing demand for Grey Cast Iron from construction. However, the automotive sector's performance remained somewhat strong with positive retail sales growth to stabilize the overall market. In Germany, the market slowed due to summer holiday impacts on transaction activity, though prices did not change due to domestic producers maintaining a controlled supply.

Key Takeaways:

             Demand: Mixed dynamics with weak construction in China and stable automotive activity.

             Prices: Grey Cast Iron prices remained unchanged in both regions.

             Inventory Levels: Healthy inventory positions reduced urgency for procurement, especially in Germany.

             Feedstock Materials: Energy costs and alloy inputs remained high but did not exert pressure on prices.

In China, Grey Cast Iron prices have stabilized due to a construction slowdown dampening demand amid ongoing issues in the property market. Some strength in the automotive market provided some support, despite the monthly growth rates slowing across the board. Overall supply of Grey Cast Iron remained stable, with consistently high steel exports countering limited imports. With lower construction activity countered by mildly firm automotive demand, price stability was maintained.

The Grey Cast Iron market in Germany was stable with prices remaining unchanged over the assessment period ending August 8, 2025. Demand for Grey Cast Iron was considered moderate with demand from originating sectors, namely the machine-building and foundry-related sector, taking into account seasonal slow-downs, which would restrict additional transactional efforts. Producers managed output carefully during the slower summer period in order to avoid excess supply. Further, although, energy and logistics prices were increasing, those increases had not formally been addressed through active price increases therefore factors contributed to overall market stability.

In both areas, there was little competition from imports, allowing Grey Cast Iron prices to remain stable. China had diminished momentum in new construction and needed to place more value on domestic production, which secured supply. Germany had sufficient localized production to avoid competition from imports, and new and iron ore imports were in short supply, as reduced imports in Favor of domestic material.

According to ChemAnalyst the prospects for Grey Cast Iron depend on the potential stabilization in the property market and sustained automotive growth. At present, weak will help to lift demand as new construction rises with the current conditions, and we would expect some upward price movement. Despite sentiment improving and demand for Grey Cast Iron increasing, weak property fundamentals may still be able to restrict a meaningful level of market recovery in the short term.

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