US Grey Cast Iron Prices Surge on Strong Demand from Autoparts and Infrastructure Sectors

In the week ending September 15, the US Grey Cast Iron market showed a bullish trend amid increased demand from the downstream automobile sector accompanied by a rising need for the country's Infrastructural development. The demand for Grey Cast Iron from the downstream automobile industry has increased as the industry has shown a rise of 8.1% this week, and the Tesla automobile was up 9.8% due to increased automotive demand and sales in the US spot market. Additionally, the demand for Grey Cast Iron from the infrastructural development sector has increased as the US government plans to improve its renewable energy source accompanied by proper water treatment and supply.

According to major market players, buyers are placing higher bids for Grey Cast Iron in the US automobile industry as they expect its long-term growth rate. The sales of the automobile sector increased as there was a growth in sales of heavy trucks in August in the US spot market. The major focus of the downstream automobile industry was on the four-wheeler automotive and heavy truck manufacturing, as the two-wheeler automotive industry was facing a pessimistic sentiment in sales in the US market as it decreased in August. Furthermore, the price of feedstock of Grey Cast Iron, such as iron ore, rises amid the overseas Chinese building and Construction sector upon implementation of various new deals and policies by the Chinese Government. This provoked the local mills to increase the price of iron ore as it gets backed by the upstream cost increase.

Meanwhile, the US government's moving dependency towards renewable energy sources has ultimately increased the Grey Cast Iron demand as they are used in wind turbine parts, solar plants, and hydraulic pumps and motors. Moreover, the increasing need for safe drinking water has increased the working rate in US water treatment plants. The upgradation of the power and energy supply chain across the USA has kept the Grey Cast Iron demand high for installing new transformers in the electric gris lines in the US spot market. Meanwhile, Exxon Mobil experienced a profit rate of 4.0% last week as the energy sector was boosted by 2.1%.

Reform of the American foundry industry increased the production of Grey Cast Iron auto parts. The major producer of automated assembly equipment like gears, shafts, and engine compressors for the downstream US automobile industry has started using Computer Numerical Controlling (CNC) technology, increasing their casting production rate. These factors uplift the price of Grey Cast Iron across the US spot market.

According to ChemAnalyst, the price of Grey Cast Iron will show an upward trend in the coming months, as demand from the downstream auto industry and renewable energy is growing rapidly in the US spot market. The increase in demand for hydraulic pumps will increase from the rising water treatment plant needs in the US spot market.