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Oct 25, 2024

Grey Cast Iron Market Shows Stability in USA Amid Fluctuating Raw Material Prices in October

The Grey Cast Iron market in the United States demonstrated remarkable stability during October 2024, despite significant movements in underlying raw material prices. The market for Grey Cast Iron, a

The Grey Cast Iron market in the United States demonstrated remarkable stability during October 2024, despite significant movements in underlying raw material prices. The market for Grey Cast Iron, a crucial material in steel mill operations and manufacturing, has been influenced by various factors including raw material costs, production rates, and demand dynamics.

According to the American Iron and Steel Institute (AISI), domestic raw steel mill production showed a modest increase of 0.7% to 1,631,000 short tons in the week ending October 19, marking the second consecutive week of growth. This production trend has directly impacted the Grey Cast Iron sector, as steel mills remain significant consumers of this material. The mill capability utilization rate reached 73.4%, up from 72.9% the previous week, indicating a slight improvement in industrial activity affecting Grey Cast Iron demand.

The stability in Grey Cast Iron prices can be attributed to the steady pig iron market, a primary raw material in Grey Cast Iron production. Pig iron prices have remained unchanged since July, showing a 10% increase compared to the previous year. This stability in pig iron prices has helped maintain consistent Grey Cast Iron production costs. However, the historical context shows significant volatility, as pig iron prices had surged over 60% in April 2022 following the Russia-Ukraine conflict.

The scrap market, an important factor in Grey Cast Iron production, has experienced upward movement, with busheling scrap prices rising while shredded scrap also increased in price. This trend in scrap prices has exerted some upward pressure on the production costs of Grey Cast Iron. However, manufacturers have been able to absorb these increases without making significant adjustments to their prices.

Regional variations in Grey Cast Iron markets have been observed, with particularly strong demand in the southeastern United States, despite recent hurricane-related logistical challenges. The Detroit, Northern Indiana, and Chicago districts have shown unique market dynamics, with mills maintaining price stability despite broader market pressures.

As per ChemAnalyst, Grey Cast Iron prices are anticipated to remain stable but might exert moderate upward pressure in the coming months due to several factors. The seasonal slowdown in scrap collection during winter months, combined with expected stronger demand in January 2025, could push Grey Cast Iron prices higher. Additionally, the recent Chinese stimulus measures and their impact on global raw material markets could create additional price pressure. However, the well-established supply chains and domestic production capabilities in the US are expected to help maintain relative stability in Grey Cast Iron prices, with potential increases limited to the end of 2024.