For the Quarter Ending March 2024
North America
The pricing environment for Grey Cast Iron in the North America region during Q1 2024 has been relatively stable, with some minor fluctuations in prices. The market was influenced by various factors, including the overall economic activities in the region, inflationary pressures, and demand from the automotive and construction sectors.
In the USA, which experienced the most significant price changes, the market started the quarter on a stable price note, with construction spending declining and low demand domestically and internationally. However, as the winter season faded and economic activities improved, prices began to show an uptrend. The inflationary pressures on consumers also contributed to the increase in prices. The demand for Grey Cast Iron remained stable throughout the quarter, with no significant changes observed compared to the previous month. However, the Producer Price Index (PPI) for Cement and concrete manufacturing increased slightly, indicating a potential increase in demand for these products.
In conclusion, the pricing environment for Grey Cast Iron in the North America region, particularly in the USA, has been stable with some positive trends. Prices have shown a slight increase during the quarter, and it is anticipated that this trend will continue in the coming months.
Asia-Pacific
The Grey Cast Iron market in the APAC region during Q1 2024 has experienced a mix of positive and negative factors that have influenced market prices. Overall, the market has been relatively stable, with some fluctuations based on specific country dynamics. In China, the largest player in the region, the market has seen significant price changes. The demand for Grey Cast Iron has been low from the domestic market, leading to lower prices. This can be attributed to a slowdown in the construction and automotive sectors, which are major consumers of Grey Cast Iron. The Chinese market has also faced challenges in procuring raw materials and has seen high inventory levels. On the other hand, there have been some positive factors in the market. The supply of Grey Cast Iron has remained stable, with balanced supplies from both domestic and international sources. While domestic demand has been weak, there have been some international orders that have supported prices to some extent. Looking at the overall trend, the market has been relatively stable with minor fluctuations. Seasonality has played a role, with prices expected to rebound in the coming months due to an optimistic outlook for demand. International demand is also expected to improve, which will support prices. In conclusion, the pricing environment for Grey Cast Iron in the APAC region during Q1 2024 has been relatively stable with some downward pressure in China due to low domestic demand. However, there are expectations of a rebound in prices in the coming months based on improved demand and seasonality.
Europe
The European Grey Cast Iron market in Q1 of 2024 experienced mixed market conditions, with various factors influencing market prices. The overall sentiment was stable, with some positive and negative trends observed. In Germany, the market was influenced by factors such as the performance of the automotive and construction sectors. The automotive market saw an improvement in new car registrations, leading to increased demand for Grey Cast Iron. However, the construction sector remained dull, impacting the pricing dynamics of the commodity. The international market also played a role in price changes, with an increase in demand from overseas markets. Export market conditions improved during this period, leading to upward price revisions by key manufacturers and traders to capitalize on sales opportunities. In conclusion, the Q1 of 2024 pricing environment for Grey Cast Iron in Europe was stable, with Germany experiencing the most significant price changes. Factors such as international demand, automotive sector performance, and construction sector activity influenced market prices.
For the Quarter Ending December 2023
North America
Navigating through Q4 of 2023 in the North American Grey Cast Iron sector unveiled a tapestry of impactful market dynamics. A noteworthy absence of reported plant shutdowns underscored the industry's resilience, maintaining an uninterrupted operational flow. Focusing on the USA, the epicenter of pricing shifts, three pivotal factors reshaped the landscape.
Delving into intricate patterns of trend, seasonality, and correlation brought forth a nuanced understanding, surpassing mere pricing analysis. Over the past year, Grey Cast Iron Plate DEL San Diego exhibited steadfast pricing, registering brisk year-on-year variations. In a testament to market adaptability, a subtle 3% adjustment from the previous quarter reflected dynamic equilibrium.
Further granularity revealed divergent pricing trajectories in the initial and latter halves of the quarter. Culminating this analysis is the quarter-ending price of Grey Cast Iron Plate DEL San Diego in the USA, standing at USD 2587/MT. This encapsulates the intricate interplay of forces steering the North American Grey Cast Iron market in the conclusive quarter of 2023.
APAC
Amidst the labyrinth of Q4 2023 in the APAC region's Grey Cast Iron domain, pivotal factors steered market dynamics. A notable absence of reported plant shutdowns underscored industry resilience, ensuring a consistent operational cadence. The spotlight on China, a linchpin in regional dynamics, reveals three critical facets influencing Grey Cast Iron pricing. Scrutinizing trends, seasonality, and correlation patterns, this analysis transcends pricing, offering a comprehensive perspective on market intricacies. Over the past year, GB-T9349 GI Iron Ex Shanghai maintained a robust equilibrium, reflecting market stability. While the year-on-year pricing exhibited nominal fluctuations, a subtle 1% adjustment from the previous quarter underscored market adaptability. Further exploration into intra-quarter dynamics uncovered nuanced pricing disparities between the initial and latter halves. Culminating this exploration is the quarter-ending price of GB-T9349 GI Iron Ex Shanghai in China at USD 1570/MT, encapsulating the intricate forces steering the APAC Grey Cast Iron market in the conclusive quarter of 2023.
Europe
Within the intricate tapestry of Q4 2023 in the European Grey Cast Iron realm, pivotal transformations unfolded. Absent any reported plant shutdowns, the sector stood resilient, fostering a seamless operational continuum. Zooming into Germany, the nucleus of pricing dynamics, three paramount factors dictated the market's trajectory. An exploration into nuanced aspects of trend, seasonality, and correlation unraveled a multifaceted pricing narrative, transcending mere numerical analysis. Over the past year, Grey Cast Iron Plate Ex Konigsbronn in Germany exhibited steadfast pricing, charting a steady course with surge in year-on-year fluctuations. In a testament to market dynamics, a subtle 3% adjustment from the preceding quarter underscored the sector's adaptive equilibrium. Further granularity divulged divergent pricing patterns in the initial and latter halves of the quarter. Culminating this exploration is the quarter-ending price of Grey Cast Iron Plate Ex Konigsbronn in Germany, standing at USD 2517/MT. This encapsulates the intricate interplay of forces steering the European Grey Cast Iron market in the conclusive quarter of 2023.
For the Quarter Ending September 2023
North America
The US grey cast iron prices increase throughout the third quarter of 2023. In the initial phase of the quarter, the price gets a bit lower amidst rising local inventory levels, driven by increased iron ore supply from Australian and Indonesian mines. Coking coal prices also dropped. Despite higher feedstock iron ore prices, domestic buyers reduced orders due to abundant inventory. Increased upstream steel output added to the supply. The US auto industry faced stiff competition from China's booming electric vehicle market. The Federal Reserve's interest rate hike and inflation concerns discouraged orders. Mills accepted lower offers while maintaining high bids. Specific product demand remained stable. Later, grey cast iron prices in the US spot market rebounded, with higher feedstock prices and expectations of increased exports. Demand for iron ore and coking coal surged, and overseas steel industries sought foreign resources. Despite some supply disruptions, demand for grey cast iron remained strong, especially in the construction and automotive sectors. Rising energy costs also contributed to the price uptick.
APAC
In the third quarter, grey cast iron prices in China saw a notable increase due to several factors. Rising iron ore costs, driven by strong construction industry demand, were a primary driver. This prompted grey cast iron manufacturers to raise their prices, generating bullish market sentiment from mid-July. Expectations of local consumer destocking also supported the price hike. Despite a weak start in July, prices attracted more orders, and demand remained high. Supply constraints resulted from production cuts at major steel mills and strong demand from the automotive industry. Additionally, government policies to boost the real estate sector and grey cast iron consumption further fueled the price rise in August. Overseas iron ore mine issues, such as those at Rio Tinto, disrupted the raw material supply chain in China, contributing to the price increase. The real estate sector's rising consumption, coupled with reduced resource availability, incentivized local mills to raise prices in response to profitable market conditions. It's important to note that this price increase may be temporary, given the potential challenge of rising iron ore inventory levels.
Europe
In the third quarter of 2023, the grey cast iron market saw a surge in prices due to increased iron ore costs in the German spot market, driven by growing demand from electric vehicle and battery industries. Mills adopted aggressive pricing strategies to attract consumers, leading to higher base prices. However, the market faced a supply shortage after the Slovenian Steel Group, a major producer, halted production due to an accident in their Hot Rolling Mill. It's expected to take about three months to resume production. Meanwhile, the combustion engine sector in the German spot market raised demand, keeping the market strong. As August arrived, grey cast iron prices continued to rise due to increased iron ore costs and surging global pig iron production. Ukrainian Railways played a crucial role in expanding logistics operations across Europe and improving the supply chain. Despite efforts by Ukrainian manufacturers like Kametstal to reduce fuel consumption and increase efficiency, rising energy costs pushed up production costs. Demand remained stable, with expectations of increased demand from overseas Asian countries like China.
For the Quarter Ending June 2023
North America
In the North American market, the Grey Cast Iron prices showcased a stable trend in the third quarter of 2023, driven by sustained demand from downstream industries, despite growing concerns about the financial market. Market players expressed deepening concerns about the health of the US banking industry, resulting in a decline in regional bank stocks and other major financial stocks. These concerns heightened worries regarding financial risks in early Q2. The collapse of the third bank in the United States intensified market worries, leading to increased concerns about the pressure on risky assets in the Q2. On a more positive note, US manufacturing output showed signs of encouraging momentum at the beginning of the second quarter. In May, there was also a positive upturn in new order inflows, although the increase was only marginal. Manufacturers observed customer hesitancy in placing orders due to higher prices and global economic uncertainty. The Downstream sectors such as the Automotive parts and component industry showed a declining trend during the ending Q2 due to a reduced activity rate. The feedstock such as Iron ore and other raw materials was at a lower edge in the US spot market. The Grey Cast Iron inventory remained at a higher edge as the consumption rate decreased from the local market amid weak demands. The uncertain economic stability in the US in the second quarter amid the debt crisis led to a shallow market phase that provoked the buyers to delay placing large orders.
Asia Pacific
In the Asian market, the Grey Cast Iron prices showcased a stagnancy in their pricing momentum in the third quarter of 2023 owing to the stable supply-demand outlook amidst the disruption in the financial market. As per market players, the Grey Cast Iron prices inched in the upward direction due to consistent demand from downstream casting industries. However, as real estate projects gradually neared completion, the demand for Grey Cast Iron decreased, resulting in steel mills facing losses instead of profits. During the first half of Q2, the sustained decline in Grey Cast Iron prices was primarily attributed to factors such as abundant supply, lower-than-expected demand, and weakened cost support. Additionally, growing concerns regarding potential interest rate hikes in the United States contributed to a more pronounced decline in steel prices compared to raw material prices. The inventory level of the feedstock Iron Ore was at a higher edge during the end of the second quarter due to abundant availability from the Australian mines as they increased their extraction rate. The overseas mines from Australia were offering feedstock Iron Ore at a cheaper price in the spot market which reduced the cost support for the Chinese Grey Cast Iron manufacturing. The demand for Grey Cast Iron from the downstream automobile industry declined amid uncertain economic conditions.
Europe
In the European market, Grey Cast Iron prices witnessed a stable trend in the second quarter of 2023. This was attributed to stable demand from the automotive and construction sectors. Market players noted that some Northwest European steelmakers re-entered the market with offers in early Q2, as the overall market outlook remained pessimistic due to lower costs and limited demand. However, buyers expressed that by the time more mills returned with offers in June, they might discover that buyers had already replaced the domestic coil with imports. Competitive import offers have been a significant driving factor behind the decline in domestic prices over the past months. Although Asian suppliers have been hesitant to provide discounts and lead times have become longer, the price difference between domestic and overseas coil prices remains significant, exerting further downward pressure on European prices. Buyers in the automotive and appliance sectors were encountering delivery delays, which was impacting their operations. European producers have already extended their lead times to June. The German Grey Cast Iron market experienced a decline in price trend in May due to a lack of downstream demand from the automobile and construction industries. The buyers were delaying placing large orders as the monsoon season was arriving, and therefore restocking was halted as the risk of corrosion increased. The ongoing Labor crisis and rising energy costs have put downward pressure on the Grey Cast Iron manufacturing process. As a ripple effect, the Grey cast Iron plate prices for Ex Konigsbronn (Germany) settled at USD 2350/MT.
For the Quarter Ending March 2023
North America
The Grey Cast Iron prices in the US market remained stagnant in the first quarter of 2023 owing to the increasing raw material costs amidst the sturdy demand outlook. This allowed manufacturers to raise their spot offer prices, and while many buyers tried to stick to their contracts, some mills still had stock available in late February. Demand remained steady, but some service centers expressed concern about customers pushing future demand forward to beat rising steel prices. Despite this, pig iron trading remained dominated by the US market, with fresh bookings at higher prices. Raw material prices continued to rise in the short term, driven by the restocking of ferrous products and a healthy level of scheduled construction activity. US mills booked several Brazilian and one Ukrainian cargo at higher rates as scrap prices skyrocketed, increasing raw material export prices slightly. Steel plant utilization rates, low service center inventories, and high raw material prices all contributed to raising the price of finished steel. Demand for the supply-constrained product remained relatively stable, and as a result, the Grey Cast Iron Plate prices for Ex-San Diego settled at USD 2365/MT.
Asia Pacific
In the Chinese market, Grey Cast Iron prices have experienced a decline in the first quarter of 2023. This was mainly due to the buildup of raw material iron ore inventories over the winter months and the subsequent drawdown from March onwards as steel production ramped up to meet rising demand. Additionally, the iron ore prices fell further due to concerns about short-term weaker demand after steel production hub Tangshan was forced to shut down some capacity due to heavy pollution, resulting in several mills reducing their sintering capacity. However, the domestic iron ore prices rose, boosted by rising imported ore prices, tightening supply, and steel mill stockpiling for the upcoming Chinese New Year. The iron ore supply and demand side has transitioned into a trend of strong supply and weak demand, which has limited the price of Grey Cast Iron in March. Despite this, the steel mill profits have gradually recovered, and steel mill inventory is low, so demand replenishment still exists, which could have a ripple effect on the GB-T9349 GI Iron prices for Ex Shanghai (China) that settled at USD 1455/MT in March 2023.
Europe
In the first quarter of 2023, the European market noticed an upward momentum in Grey Cast Iron prices, driven by increased demand and growing mill order books. Despite some erratic trends in January, the overall market remained stable, and sentiment for Grey Cast Iron sheets was positive in February. Grey Cast Iron makers reported good order books and stable demand, which allowed for a further price increase. However, import material availability was limited, with long lead times and relatively high prices for Grey Cast Iron from Asia and disruptions to exports from Turkey due to earthquakes in February. These factors, combined with limited domestic supply caused by furnace stoppages, technical issues at some mills, and steady demand, support domestic prices. Buyers in Italy, in particular, showed more interest in the imported coil due to the long lead times and high domestic prices. The Central European market was also impacted by planned and unexpected stoppages at local mills and missing import volumes from Russia and Ukraine. As a ripple effect, the Grey Cast Iron plate prices for Ex Konigsbronn (Germany) settled at USD 2300/MT.
For the Quarter Ending December 2022
North America
Grey Cast Iron prices in the US market fell in the fourth quarter of 2022 owing to a lower demand outlook. According to market participants, the increased pig iron production occurred as US steelmakers struggled with a global feedstock scarcity caused by Russia's invasion of Ukraine, resulting in prices diverging from ferrous scrap pricing. Grey Cast Iron's demand was expected to decline in mid-Q4. Poor material inflows into yards, logistical issues with shipments, particularly the drought curtailing barge freight along the Mississippi River, and accelerating export demand from Asian buyers, particularly for shredded scrap, had all contributed to marginally better sentiment in specific markets. Buyers reported little activity in the spot market as the holiday season approached. Some were concerned that the first quarter would begin slowly, as it did in January 2022, taking several weeks to develop. US buyers were still working through some inventories of higher-priced Brazilian cargoes purchased in the aftermath of the conflict. At the end of Q4, buyers avoided purchasing activity and opted for a wait-and-see approach. As a result, the grey Cast Iron Plate prices for Ex-San Diego (USA) settled at USD 2281/MT.
Asia Pacific
Grey Cast Iron prices in the Chinese market showed a declining trend in the fourth quarter of 2022, despite China's epidemic prevention and control measures. According to market participants, the steel mills in Changzhi, Shanxi, were given notice on the evening of October 17 to shut down all sintering machines, resulting in the suspension of some blast furnaces. The fourth quarter was the busiest period for international mine shipments. As a result, the major mines increased their November shipments to meet their annual targets. Domestic demand rose marginally. November is typically an off-season for demand, but demand was strong in November 2022 due to the relatively warm weather. Steel mills were more eager to manufacture, and pig iron output was high. In December, the operating rate of blast furnaces at steel mills had decreased. However, demand remains strong as pig iron output remains high. Global shipments and arrivals fell slightly at the ending Q4. Despite a slight tightening of supply, the pressure has not subsided significantly. However, as a result of pandemic outbreaks, finished product demand remains low, putting a strain on steel mill warehousing capacity. As a result, the Ex Shanghai (China) GB-T9349 GI Iron prices settled at USD 1496/MT.
Europe
Grey Cast Iron prices in the German market rose in the fourth quarter of 2022, despite a stable supply and demand outlook. Suppliers claimed in October that only a few mills had first-quarter coils available and that they were focusing on filling their order book for the fourth quarter. Mills have refused to provide transparent prices for first-quarter 2023 delivery. Meanwhile, buyers expected mills to raise first-quarter delivery prices as energy costs fell. Buyers reported that negative sentiment lingered in the market as the year ended. End consumers were unwilling to settle large tonnage deals on low demand, making it difficult for distributors to reduce inventories. Suppliers prefer to clear inventories at higher prices in the United States, and buyers have limited options. Furthermore, several blast furnace units in Europe have been idled since September 2022, reducing demand for raw materials. Pellets felt the impact of lower iron ore demand in some cases, while buyers said they switched to using more lump and sinter in the burden, and some even took on lower quality pellets at trade-enabling prices and terms. Thus, the discussions of the Grey cast Iron plate for Ex Konigsbronn (Germany) settled at USD 2223/MT in December.
For the Quarter Ending September 2022
North America
Grey Cast Iron prices fell in the US market during the third quarter of 2022 as concerns about a domestic recession grew. According to market participants, the recent stagnation in the global merchant pig iron trade began to lift slightly over the last month, but the unfolding dynamic failed to raise prices. Although some market participants believe a rebound is imminent, others believe the ongoing origin-based price split will continue, with sanctioned Russian material unlikely to be sold at a significant margin to scrap. The global merchant pig iron trade has remained stagnant, reflecting low demand in all significant importing regions, with only sporadic sales at lower prices. Arrivals of previously reserved tonnes meet producers' short-term needs while softening finished product market sentiment adds to the pressure. The appetite level in the United States remains significantly low, with only a few soft indications of interest circling, mirroring the August decline. Prices thus remained southbound in Q3 2022, with participants adopting a wait-and-see attitude, waiting for the price slide to stabilize before returning to the market. Therefore, the discussions of Grey Cast Iron Plate prices for Ex-San Diego (USA) settled at USD 2428/MT.
Asia Pacific
In the Asian market, Grey Cast Iron prices witnessed a rising trend during the third quarter of 2022 amidst the seasonal monsoon factor and duty imposition. The operating conditions of steel manufacturers have deteriorated as steel prices continue to fall and coking coal prices rise. Furthermore, margins are being squeezed due to a sharp increase in coking coal costs following a brief period of softening. Iron ore prices, on the other hand, have remained stable. The demand environment remains sluggish. Buyers are waiting to see if the price drop is due to low seasonal demand during the monsoon season or to lower export duties. Seasonality is expected to take its toll in the September quarter, after which orders are expected to improve. Therefore, the GB-T9349 GI Iron prices for Ex Shanghai (China) settled at USD 1604/MT.
Europe
During the third quarter of 2022, Grey Cast Iron prices witnessed a falling trend in the European market as feedstock Pig Iron prices plunged, and consumption levels remained stagnant low. According to market participants, the Grey Cast iron market activity has not yet resumed adequately following the August summer break, as buyers remain in a wait-and-see mode, discouraged by uncertainty and low visibility. Local distributors buy directly from producers to replenish stocks while avoiding more expensive Russian materials. The global merchant pig iron trade remains stagnant, reflecting low demand in all significant importing regions, with only sporadic sales at lower prices. Concerns in Europe and the Mediterranean about rising energy supply prices for the coming season are forcing producers to reconsider output reduction plans, and this has rejuvenated buyers' interest in a wait-and-see mode. Buyers claim that when the war began, they stopped buying pig iron and other raw materials from Russian suppliers. Thus, the Grey cast Iron plate prices for Ex Konigsbronn (Germany) are fixed at USD 2274/MT.
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.
