For the Quarter Ending June 2022
North America
Cast Iron prices are declining in the US domestic market due to dwindling raw material costs. A combination of adequate prime scrap supply, slight improvements in iron metallic substitute imports, shifts in melt-mixes, and falling pig iron and finished steel prices are devising to leave busheling prices gullible to the additional downside in June, which could further narrow the busheling/shredded scrap spread. As per market players since April, a pullback in pig iron pricing has heavily weighed on US mills' tolerance for higher prices, with further declines likely to weigh on bushel prices in July. Prices also extended declines for a seventh week, with lead times between 3-6 weeks. On the supply side, seasonal shutdowns among significant automakers in June could counter some downsides that would likely slow down the month. However, the ferrous trade for June spread showcases signs of normalizing again.
Asia Pacific
In India, Grey Cast Iron prices witnessed an uptrend during the second quarter of 2022, primarily due to the expansion in the manufacturing sector. In April, the Grey Cast Iron prices decreased owing to the dwindling demand outlook from the domestic and overseas end-user manufacturers. However, in May and June, prices surged as output, and new orders rose simultaneously amid the loosening of COVID-19 restrictions. At the same time, domestic purchasing rose sharply, with supplier delivery times further prolonged. The government's decision to raise duties to curb exports significantly led to further price corrections in the domestic market. As per market participants, GCI prices are expected to fall in the coming weeks following the reduction in import duties on some vital raw materials used in its manufacturing.
Europe
In the European market, the Grey Cast Iron prices witnessed mixed sentiments during the second quarter of 2022 owing to the fluctuating raw material costs, primarily cast iron. Cast iron prices are falling in new contracts on average in May and June compared to April. Buyers, especially Italian distributors purchased directly from producers to restock stockpiles at the main Marghera port, have a meager appetite for cast iron. Market players anticipate the lower prices amidst high supply and overall weakness in the domestic market. With sliding scrap prices in the domestic market, mills prefer to purchase scrap and refuse to commit to Cast iron's longer lead times.
For the Quarter Ending March 2022
North America
In the US market, the prices of Grey Cast Iron showcased a stable trend during Q1 of 2022 due to the steady trend owing stretched supply chain caused by the Russia-Ukraine. Also, inflationary pressures remained notable, with input costs rising at the sharpest pace amid critical components and logistics hikes, including transportation, metals, and fuel prices. As per the market participants, the substantial and steep expansions in output and new orders provoked a faster upturn in employment and longer supplier lead times. Production output charges rose; meanwhile, business sentiment was at the lowest as inflationary worries dampened hopes of new consumer purchases and greater demand. As a ripple effect, the manufacturers are pointing out the possibility of further rise in the coming days.
Asia Pacific
In Asia, the Grey Cast Iron prices witnessed a soaring trajectory during the first quarter of 2022 owing to the increased raw material prices amidst the conflict of Eastern European nations. This high trend is primarily backed by the significant COVID disruptions, stretched global supply chains, growing inflationary pressures, and raised geopolitical tensions. As per market players, the imbalance between supply and demand outlook for input raw materials was a significant factor contributing to a further rise in manufacturers' purchasing costs during the Q1 of 2022, while average input prices grew at the fastest pace in the last four months.
Europe
During the first quarter of 2022, the Grey cast iron prices in Europe rose due to solid demand despite supply disruptions caused by fighting in Eastern European countries. The Russia-Ukraine conflict and its ramifications, particularly for raw materials and logistics, aided the Grey Cast Iron's upward trend. The Russia-Ukraine conflict has caused market panic about supply shortages, resulting in prices moving radically, primarily for iron ore or coal. Prices of grey cast iron have also responded to the crisis, but their uptick movement has been limited. Increasing procurement risk, financial constraints, non-accessibility due to port bottlenecks, growing uncertainty about product availability, and rising safety and security concerns in the regional market are among the significant factors that have pushed sentiments in commodity markets worldwide. As a ripple effect, the price of grey cast iron showcased bullish sentiments.
