Chinese S.G. cast iron prices down
2023-03-21 08:25:41 [Print]
BEIJING (Asian Metal) 21 Mar 23 - Discouraged by weak demand from foundries, Chinese S.G. cast iron prices went down 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 RMB3,670/t (USD532/t) and RMB3,800/t (USD551/t) EXW D/P in Hebei and Shandong respectively, down by RMB100/t (USD14/t) and RMB50/t (USD7/t) respectively from one week ago. Upon slow market performance, insiders predict S.G. cast iron prices would fall further in the coming week.
A producer in Shandong reported that he asked RMB3,820/t (USD554/t) EXW D/P for S.G. cast iron Q10 on Monday and could accept concessions no more than RMB20/t (USD3/t) for firm bids. "I quoted RMB3,820/t (USD554/t) without any concession late last week," he said, adding that he ever sold around 500t of the material at RMB3,850/t (USD558/t) last Monday. Now he has an inventory of nearly 38,000t, up by around 10,000t from one week ago. Given rising supply but slow market performance, he is of the opinion that S.G. cast iron prices would go down further in the coming week.
The company owns an annual production capacity of 1.0 million tons for iron and produced approximately 640,000t and 120,000t of S.G. cast iron in 2022 and in the first two months of this year respectively. It estimated the output would reach about 60,000t in March, in line with February.
A consumer in Hebei stated that he received an offer of RMB3,700/t (USD536/t) EXW D/P for S.G. cast iron Q10 from a local producer on Monday. According to his experience, he could buy around 300t at RMB3,670/t (USD532/t) if he had orders. "I last purchased around 300t at RMB3,770/t (USD547/t) one week ago," he explained, adding that his demand for S.G. cast iron shrank by around 30% compared with the same time of last year, while the supply from producers increased in recent one month. Under rising supply but reduced demand, he predicts S.G. cast iron prices would edge down further in the coming week.
With an annual consumption amount of 4,000t for S.G. cast iron, the company used about 3,000t of the material in 2022 and almost 400t in the first two months of this year. It would use nearly 200t in March, similar to February. It holds an inventory of 200t or so at present.
A producer in Shandong reported that he asked RMB3,820/t (USD554/t) EXW D/P for S.G. cast iron Q10 on Monday and could accept concessions no more than RMB20/t (USD3/t) for firm bids. "I quoted RMB3,820/t (USD554/t) without any concession late last week," he said, adding that he ever sold around 500t of the material at RMB3,850/t (USD558/t) last Monday. Now he has an inventory of nearly 38,000t, up by around 10,000t from one week ago. Given rising supply but slow market performance, he is of the opinion that S.G. cast iron prices would go down further in the coming week.
The company owns an annual production capacity of 1.0 million tons for iron and produced approximately 640,000t and 120,000t of S.G. cast iron in 2022 and in the first two months of this year respectively. It estimated the output would reach about 60,000t in March, in line with February.
A consumer in Hebei stated that he received an offer of RMB3,700/t (USD536/t) EXW D/P for S.G. cast iron Q10 from a local producer on Monday. According to his experience, he could buy around 300t at RMB3,670/t (USD532/t) if he had orders. "I last purchased around 300t at RMB3,770/t (USD547/t) one week ago," he explained, adding that his demand for S.G. cast iron shrank by around 30% compared with the same time of last year, while the supply from producers increased in recent one month. Under rising supply but reduced demand, he predicts S.G. cast iron prices would edge down further in the coming week.
With an annual consumption amount of 4,000t for S.G. cast iron, the company used about 3,000t of the material in 2022 and almost 400t in the first two months of this year. It would use nearly 200t in March, similar to February. It holds an inventory of 200t or so at present.
