North America

Grey Cast Iron prices in the US market fell in the fourth quarter of 2022 owing to a lower demand outlook. According to market participants, the increased pig iron production occurred as US Steel Plate Prices makers struggled with a global feedstock scarcity caused by Russia's invasion of Ukraine, resulting in prices diverging from ferrous scrap pricing. Grey Cast Iron's demand was expected to decline in mid-Q4. Poor material inflows into yards, logistical issues with shipments, particularly the drought curtailing barge freight along the Mississippi River, and accelerating export demand from Asian buyers, particularly for shredded scrap, had all contributed to marginally better sentiment in specific markets. Buyers reported little activity in the spot market as the holiday season approached. Some were concerned that the first quarter would begin slowly, as it did in January 2022, taking several weeks to develop. US buyers were still working through some inventories of higher-priced Brazilian cargoes purchased in the aftermath of the conflict. At the end of Q4, buyers avoided purchasing activity and opted for a wait-and-see approach. As a result, the grey Cast Iron Plate prices for Ex-San Diego (USA) settled at USD 2281/MT.

Asia Pacific

Grey Cast Iron prices in the Chinese market showed a declining trend in the fourth quarter of 2022, despite China's epidemic prevention and control measures. According to market participants, the steel mills in Changzhi, Shanxi, were given notice on the evening of October 17 to shut down all sintering machines, resulting in the suspension of some blast furnaces. The fourth quarter was the busiest period for international mine shipments. As a result, the major mines increased their November shipments to meet their annual targets. Domestic demand rose marginally. November is typically an off-season for demand, but demand was strong in November 2022 due to the relatively warm weather. Steel mills were more eager to manufacture, and pig iron output was high. In December, the operating rate of blast furnaces at steel mills had decreased. However, demand remains strong as pig iron output remains high. Global shipments and arrivals fell slightly at the ending Q4. Despite a slight tightening of supply, the pressure has not subsided significantly. However, as a result of pandemic outbreaks, finished product demand remains low, putting a strain on steel mill warehousing capacity. As a result, the Ex Shanghai (China) GB-T9349 GI Iron prices settled at USD 1496/MT.

Europe

Grey Cast Iron prices in the German market rose in the fourth quarter of 2022, despite a stable supply and demand outlook. Suppliers claimed in October that only a few mills had first-quarter coils available and that they were focusing on filling their order book for the fourth quarter. Mills have refused to provide transparent prices for first-quarter 2023 delivery. Meanwhile, buyers expected mills to raise first-quarter delivery prices as energy costs fell. Buyers reported that negative sentiment lingered in the market as the year ended. End consumers were unwilling to settle large tonnage deals on low demand, making it difficult for distributors to reduce inventories. Suppliers prefer to clear inventories at higher prices in the United States, and buyers have limited options. Furthermore, several blast furnace units in Europe have been idled since September 2022, reducing demand for raw materials. Pellets felt the impact of lower iron ore demand in some cases, while buyers said they switched to using more lump and sinter in the burden, and some even took on lower quality pellets at trade-enabling prices and terms.

Thus, the discussions of the Grey cast Iron plate for Ex Konigsbronn (Germany) settled at USD 2223/MT in December.

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