The latest cast iron and cast steel casting prices of China in 2012

In the beginning of 2012, all salaries of workers in cast iron and cast steel foundries and machining workshops have been increased compared with that in 2011. Moreover, almost all material costs and transportation costs have been increased too. Although pig iron price has reduced about 100 to 200 RMB/ton than 2011, but the other increased production costs have caused the latest prices of iron and steel castings have increased largely.

Let us make a simple comparison.

In 2011, the raw grey iron casting price ex-factory was about 1.12 USD/kg, but in 2012, it has increased to 1.21 USD/kg. Of course, the reduced exchange rate of USD to RMB also caused the price increasing at a certain level.

In 2012, we hope the pig iron cost and exchange rate could become stable, however, the increased manpower costs will not be reduced. So, the metal casting prices will not be reduced.

There is another important issue. Because of the energy saving and environmental control in China, more and more metal foundries have been affected. Many foundries in South of China have been closed because of these factors, therefore, more and more products have been shifted to North of China. So, many inquires and orders are flowing to North China, which also caused the increased prices.

In addition, as for metal foundries, the production output is very important, however, the small and light castings will affect the production rate. For example, one molding flasks could produce a piece of casting of 10kg, or it can produce 5 pcs castings of 1kg each piece. The first product will be welcome by foundries and workers, because it could get higher production output. At the same time, the price per kg for second product will be higher.

The followings are the latest prices of iron and steel castings depends on the different casting processes.

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