Chinese S.G. cast iron market slow
2023-04-04 07:56:17 [Print]
BEIJING (Asian Metal) 4 Apr 23 - Discouraged by soft demand from foundries and weakening prices of raw materials, 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 RMB3,700/t (USD537/t) and RMB3,600/t (USD522/t) EXW D/P in Shanxi and Liaoning respectively, both down by around RMB40/t (USD6/t) from late last week. Given limited demand from foundries but rising stocks from producers, insiders predict S.G. cast iron prices would decline further in the coming week.
A consumer in Liaoning stated that he did not have plans to restock this week, as S.G. cast iron prices continued on the decline. According to him, his demand for S.G. cast iron shrank by around 50% YoY. He got an offer of RMB3,650/t (USD530/t) EXW D/P for S.G. cast iron Q10 from a producer in Benxi, Liaoning on Monday and could buy at RMB3,600/t (USD522/t) if he had orders. "I last purchased around 100t of the material at RMB3,700/t (USD537/t) three weeks ago and could buy at RMB3,640/t (USD528/t) late last week," he said, adding that he has no much confidence in the coming market seeing the slow market performance. Given that producers are competing for orders, he deems S.G. cast iron prices would edge down further in the coming week.
The company owns an annual consumption capacity of 3,000t for S.G. cast iron and used almost 2,500t of the material in 2022. Its consumption amount reached nearly 300t in the first three months of this year, holding an inventory of 50t or so at present.
A producer in Shanxi reported that he could get no more than three inquires in one day this week, against at least five ones three weeks ago. He asked RMB3,720/t (USD540/t) EXW D/P for S.G. cast iron Q10 on Monday and could accept a concession of RMB20/t (USD3/t) at most for firm bids. "I sold around 150t of the material at RMB3,740/t (USD543/t) last Sunday," he said, adding that most producers hold bearish attitudes towards the coming market seeing stagnant demand from foundries. Given this situation, he is of the opinion that S.G. cast iron prices would fall further in the coming week.
Reporting an annual production capacity of 360,000t for S.G. cast iron, the company produced nearly 80,000t of the material in 2022 and about 6,000t in the Q1 of this year. It estimated an output of roughly 3,000t in April, similar to March. It holds an inventory of almost 3,000t, down by 1,000t from two weeks ago.
A consumer in Liaoning stated that he did not have plans to restock this week, as S.G. cast iron prices continued on the decline. According to him, his demand for S.G. cast iron shrank by around 50% YoY. He got an offer of RMB3,650/t (USD530/t) EXW D/P for S.G. cast iron Q10 from a producer in Benxi, Liaoning on Monday and could buy at RMB3,600/t (USD522/t) if he had orders. "I last purchased around 100t of the material at RMB3,700/t (USD537/t) three weeks ago and could buy at RMB3,640/t (USD528/t) late last week," he said, adding that he has no much confidence in the coming market seeing the slow market performance. Given that producers are competing for orders, he deems S.G. cast iron prices would edge down further in the coming week.
The company owns an annual consumption capacity of 3,000t for S.G. cast iron and used almost 2,500t of the material in 2022. Its consumption amount reached nearly 300t in the first three months of this year, holding an inventory of 50t or so at present.
A producer in Shanxi reported that he could get no more than three inquires in one day this week, against at least five ones three weeks ago. He asked RMB3,720/t (USD540/t) EXW D/P for S.G. cast iron Q10 on Monday and could accept a concession of RMB20/t (USD3/t) at most for firm bids. "I sold around 150t of the material at RMB3,740/t (USD543/t) last Sunday," he said, adding that most producers hold bearish attitudes towards the coming market seeing stagnant demand from foundries. Given this situation, he is of the opinion that S.G. cast iron prices would fall further in the coming week.
Reporting an annual production capacity of 360,000t for S.G. cast iron, the company produced nearly 80,000t of the material in 2022 and about 6,000t in the Q1 of this year. It estimated an output of roughly 3,000t in April, similar to March. It holds an inventory of almost 3,000t, down by 1,000t from two weeks ago.
