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.
