Update on Chinese domestic pig iron market
It is reported that domestic casting pig iron and ductile cast iron markets tend better but perform differently in different areas. At present, pig iron price was pulled up by rising prices of coke and iron ore in the northeast, but dips with slim transactions in Shanxi and Hebei because of heavy stocks and tight liquidity. Meanwhile, market in Shandong, Jiangsu and Zhejiang moves dull amid balanced trend.Pervading prices of casting pig iron and ductile cast iron in Benxi hold at CNY 2750 per tonne to CNY 2850 per tonne with active transactions, thanks to their high quality products and loyal customers. Some plants intend to raise prices later, as growing coke price has added production cost up. However, prices in Shanxi and Hebei completely ignore advancing cost and roll back accounting for sluggish trades. Current casting pig iron is quoted at CNY 2750 per tonne to CNY 2800 per tonne in Yicheng and at around CNY 2800 per tonne in Wu’an where ductile cast iron price stands at CNY 2730 per tonne to CNY 2780 per tonne.Although prices are getting near to the cost line, the downtrend would spread into near future unless problems of high stockpiles and waning transactions are tackled. Mainstream quotation in Shandong levels with two-month price at CNY 2750 per tonne to CNY 2800 per tonne. Local producers play cautiously and haven’t blindly expanded capacity, making stocks low and leading demand and supply balanced. However, most of them are holding dull sentiment on the future market and will not raise price unless coke and iron ore prices steeply surge.Zhejiang and Jiangsu are big consumers of casting pig iron and ductile cast iron, so local market keeps steady since it picked up in March. Despite some fluctuations, the range just stays within CNY 50 per tonne. This certain situation is expected to maintain in the short term and would move stable even under the impact of leaping coke and iron ore prices.