Grey Cast Iron Prices Soar in the European Market Amidst Rising Feedstock Costs and Supply Disruption

The price of Grey Cast Iron shows a rising trend in the European spot market due to feedstock prices such as Iron ore and Coal increases in September 2023. The supply of Grey Cast Iron gets lowered as the export rate from the major European countries such as Ukraine and Russia. Meanwhile, the demand from the downstream automotive sector holds firm as the electric vehicle manufacturing industries boost. The export of pig iron from overseas South American mines increases along with the rising exploration rate in regional mines. The hike in demand for feedstock across the globe incited the mills to increase the price for Grey Cast Iron in the respective market along with the European region amidst an increase in production costs.

In a significant development, Ukrainian steel companies have witnessed a remarkable surge in pig iron exports, soaring by 4.5 times compared to the previous month, supporting the Grey Cast Iron Prices in a Northward trend. The Metinvest mining company in Ukraine underscores the crucial importance of this growth in sea exports, especially for their mining segment. Transport limitations of iron ore raw materials by sea had earlier reduced the loading of mining and processing plants and resulted in lowering of Grey Cast Iron supply. In the Pilbara region of Western Australia, mining giant Rio Tinto has unveiled its strategic shift. While the company expects to ship between 323-338 million tonnes of iron ore from its mines in 2024, it will be mining more low-iron ore. Rio Tinto plans to undergo mine replacement projects to boost its products' average iron content within the sales structure. Moreover, they are engaged in large-scale exploration activities in the Rhodes Ridge joint venture, deemed one of Pilbara's most promising yet undeveloped projects and slated for completion this year. This would uplift the Grey Cast Iron market in the European region.

The prices of pig iron in the Black Sea region have been maintained at a higher level, mainly due to Russian pig iron producers' evaluation of export opportunities. This evaluation comes in response to the Russian government's introduction of an additional export duty. These deliberations are affecting the supply chain and pricing in the region, adding further uncertainty to the global Grey Cast Iron market. As a result, the Grey Cast Iron market in Europe is experiencing heightened price pressures due to the interplay of these factors. Industry stakeholders and businesses reliant on Grey Cast Iron are advised to closely monitor these developments as they can soon have significant consequences for production costs and pricing.

According to ChemAnalyst, the price of Grey Cast Iron is anticipated to show a surge in the European market as the feedstock iron ore and coal price increases. Furthermore, the export rate for the last quarter and starting months of 2024 is expected to grow significantly. The buyers would place large orders as the market players look forward to restocking as the downstream consumption uplifts.