Chinese S.G. cast iron market inactive
2023-03-29 07:42:10 [Print]
BEIJING (Asian Metal) 29 Mar 23 - Due to the weak demand from foundries, Chinese S.G. cast iron prices continued on the decline this week. Currently prices of S.G. cast iron Q10 Si 0.5-1.4%min, Mn 0.2%max, P 0.05%max, S 0.02%max stand at RMB3,550/t (USD516/t) and RMB3,650/t (USD530/t) EXW D/P in Shanxi and Hebei respectively, both down by around RMB50/t (USD7/t) from one week ago. As the market runs slowly, insiders predict S.G. cast iron prices would edge down further in the coming week.
A producer in Shanxi stated that their sales volume reached around 1,500tpd this week, down by 1,700tpd one week ago. They asked RMB3,600/t (USD523/t) EXW D/P for S.G. cast iron Q10 on Tuesday and could accept bids no less than RMB3,550/t (USD516/t) for firm bids. "I sold around 200t of the material at RMB3,550/t (USD516/t) this Tuesday and refused any bids below RMB3,600/t (USD523/t) one week ago," he said, adding that his clients mainly purchase with minimum volumes currently due to limited orders and weakening prices of raw materials. Given this situation, he deems S.G. cast iron prices would fall further in the coming week.
The company owns an annual production capacity of 550,000t for S.G. cast iron. It estimated the output would reach about 43,000t in March, up from 40,000t in February. Currently it has an inventory of nearly 20,000t. It recorded an output of roughly 255,000t in 2022.
A consumer in Hebei reported that he plans to buy around 200t of S.G. cast iron early next week, while he used to purchase at least 500t at one time when prices showed signs of moving up. He received an offer of RMB3,670/t (USD533/t) EXW D/P for S.G. cast iron Q10 on Tuesday and could buy at RMB3,650/t (USD530/t) upon his experience. "My supplier refused to accept bids lower than RMB3,700/t (USD538/t) one week ago," he revealed, adding that he only has an inventory of 50t at present, lower than the regular level of 100t. Given the slow market performance, he is of the opinion that S.G. cast iron prices would decline further in the coming week.
Reporting an annual consumption capacity of 4,000t for S.G. cast iron, the company consumed nearly 300t of the material in the first two months of this year and almost 3,000t in 2022. It estimated the consumption amount would reach nearly 200t in March, in line with February.
A producer in Shanxi stated that their sales volume reached around 1,500tpd this week, down by 1,700tpd one week ago. They asked RMB3,600/t (USD523/t) EXW D/P for S.G. cast iron Q10 on Tuesday and could accept bids no less than RMB3,550/t (USD516/t) for firm bids. "I sold around 200t of the material at RMB3,550/t (USD516/t) this Tuesday and refused any bids below RMB3,600/t (USD523/t) one week ago," he said, adding that his clients mainly purchase with minimum volumes currently due to limited orders and weakening prices of raw materials. Given this situation, he deems S.G. cast iron prices would fall further in the coming week.
The company owns an annual production capacity of 550,000t for S.G. cast iron. It estimated the output would reach about 43,000t in March, up from 40,000t in February. Currently it has an inventory of nearly 20,000t. It recorded an output of roughly 255,000t in 2022.
A consumer in Hebei reported that he plans to buy around 200t of S.G. cast iron early next week, while he used to purchase at least 500t at one time when prices showed signs of moving up. He received an offer of RMB3,670/t (USD533/t) EXW D/P for S.G. cast iron Q10 on Tuesday and could buy at RMB3,650/t (USD530/t) upon his experience. "My supplier refused to accept bids lower than RMB3,700/t (USD538/t) one week ago," he revealed, adding that he only has an inventory of 50t at present, lower than the regular level of 100t. Given the slow market performance, he is of the opinion that S.G. cast iron prices would decline further in the coming week.
Reporting an annual consumption capacity of 4,000t for S.G. cast iron, the company consumed nearly 300t of the material in the first two months of this year and almost 3,000t in 2022. It estimated the consumption amount would reach nearly 200t in March, in line with February.
