Chinese S.G. cast iron suppliers hold bearish attitudes
2023-04-18 08:28:06 [Print]
BEIJING (Asian Metal) 18 Apr 23 - Given falling prices of raw materials and stagnant demand from downstream clients, Chinese S.G. cast iron suppliers showed bearish sentiment towards the coming market this week. The current 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 RMB3,440/t (USD501/t) and RMB3,540/t (USD515/t) EXW D/P in Shanxi and Henan respectively, down by around RMB10/t (USD1.5/t) and RMB30/t (USD4/t) from late last week. Due to few buying activities from downstream clients, insiders predict S.G. cast iron prices would go down in the coming week.
A producer in Anyang, Henan stated that they stopped production at the end of March and had no confidence in the coming market. He asked RMB3,550/t (USD517/t) EXW D/P for S.G. cast iron Q10 this Monday and finally sold around 20t at RMB3,540/t (USD515/t). "I refused bids below RMB3,570/t (USD520/t) late last week," he said, adding that most of his clients purchase with volumes no more than 33t at a time now, while they usually buy about 200t one month ago. As prices coke continued on the decline, he is of the opinion that S.G. cast iron prices would fall further by around RMB20/t (USD3/t) in the coming week.
The company, reporting an annual production capacity of 700,000t for S.G. cast iron, produced almost 200,000t of the material in 2022 and about 70,000t in the Q1 of this year. It holds an inventory of nearly 60,000t at present, down by 1,000t from one week ago.
A producer in Xinzhou, Shanxi showed bearish sentiment to the coming market as the demand from foundries would shrink fast in early May, one month earlier than past years. He quoted RMB3,500/t (USD509/t) EXW D/P for S.G. cast iron Q10 this Monday and could accept bids no less than RMB3,440/t (USD501/t) for regular clients. "I insisted on RMB3,450/t (USD502/t) last Sunday and sold around 300t of the material in total," he said, adding that coke prices went down by RMB100/t (USD15/t) on Monday, which would weaken prices of S.G. cast iron in coming days. He deems that S.G. cast iron prices would edge down by around RMB40/t (USD6/t) in the coming week.
Reporting an annual production capacity of 550,000t for S.G. cast iron, the company produced almost 125,000t of the material in the Q1 of this year, against roughly 255,000t in 2022. It has an inventory of nearly 15,000t at present, down by 5,000t from two weeks ago.
A producer in Anyang, Henan stated that they stopped production at the end of March and had no confidence in the coming market. He asked RMB3,550/t (USD517/t) EXW D/P for S.G. cast iron Q10 this Monday and finally sold around 20t at RMB3,540/t (USD515/t). "I refused bids below RMB3,570/t (USD520/t) late last week," he said, adding that most of his clients purchase with volumes no more than 33t at a time now, while they usually buy about 200t one month ago. As prices coke continued on the decline, he is of the opinion that S.G. cast iron prices would fall further by around RMB20/t (USD3/t) in the coming week.
The company, reporting an annual production capacity of 700,000t for S.G. cast iron, produced almost 200,000t of the material in 2022 and about 70,000t in the Q1 of this year. It holds an inventory of nearly 60,000t at present, down by 1,000t from one week ago.
A producer in Xinzhou, Shanxi showed bearish sentiment to the coming market as the demand from foundries would shrink fast in early May, one month earlier than past years. He quoted RMB3,500/t (USD509/t) EXW D/P for S.G. cast iron Q10 this Monday and could accept bids no less than RMB3,440/t (USD501/t) for regular clients. "I insisted on RMB3,450/t (USD502/t) last Sunday and sold around 300t of the material in total," he said, adding that coke prices went down by RMB100/t (USD15/t) on Monday, which would weaken prices of S.G. cast iron in coming days. He deems that S.G. cast iron prices would edge down by around RMB40/t (USD6/t) in the coming week.
Reporting an annual production capacity of 550,000t for S.G. cast iron, the company produced almost 125,000t of the material in the Q1 of this year, against roughly 255,000t in 2022. It has an inventory of nearly 15,000t at present, down by 5,000t from two weeks ago.
