Iron Casting Market Intelligence

Are you looking for answers on Iron Casting category?

Are you looking for answers on Iron Casting category?

  • What are the key trends in Iron Casting category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Iron Casting industry?
  • How is Iron Casting industry performing?

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Report Coverage

  • Global Iron Castings Industry Trends
  • Key Global Supplier Profiles
  • Cost Structure Analysis

Table of contents

  1. Iron Castings Executive Summary
  2. Global Iron Castings Industry Outlook

 

  1. Iron Castings Market Analysis
  2. Global Iron Castings Market Maturity
  3. Global Iron Castings Industry Trends
  4. Regional Market Outlook
  5. Porter's Five Forces Analysis: Developed Global

 

  1. Iron Castings Supply Analysis
  2. Key Global Iron Castings Suppliers
  3. Key Global Supplier Profile
  4. Supplier SWOT Analysis
  5. Supplier Financial Performance Indicators

 

  1. Cost Structure
  2. Cost Drivers - Raw Materials, Electricity, and Labor

 

  1. Iron Castings Procurement Best Practices
  2. Contract Structure
  3. Emerging Technologies: Pros and Cons
  4. Industry Best Practices

 

 

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Global Iron Castings Industry Outlook

  • The US, China,, India, Japan, and Germany are ranked as top five iron castings producing countries
  • China contributes to nearly half of the global production of iron castings and almost more than three times production of the US
  • The global iron castings market is highly fragmented and the buyers have high power. Due to volatile raw material prices, the suppliers have high bargaining power

 iron-castings-market-size

Global Iron Castings Market Maturity

China contributes 45–47 percent of the global iron castings production. Most of the iron castings producers are small and medium size enterprises .Automobile and industrial machinery are the two major end-use industries that serves as a key demand drivers for the iron castings production

Global Iron Castings Industry Trends

  • The global iron castings market is fragmented and the foundries compete by offering various additional services and differentiate themselves amongst peers on cost and product quality
  • The developed nations, such as the US, Germany have stringent environmental regulations, and hence, the foundries are likely to invest more on environment friendly practices like recycling of sand, usage of silicate binder, etc

Cost Structure

  • Primary cost drivers are those, which directly affect the cost of the product

–Materials, energy, wage rates are some of the primary drivers, which can be directly tied to the variations in cost

  • Secondary cost drivers are those, which explains the variations in primary cost drivers that affects the cost indirectly

–Coke/charcoal and iron ore are the main raw materials used in the production of pig iron. Any change in the price of coke/charcoal and iron ore will have its impact on the price of pig Iron 

  • Coal prices will have its effect on the price of electricity
  • Key price drivers are end-user demand, taxes contract terms, and the overall cost

Iron Ore: Price Analysis(China)

Market Overview 

  • The prices for Iron Ore in October 2018 averaged at $73 per MT, a M-o-M an increase of 6.7 percent as compared to September's average of $68 per MT. This is primarily owing to the tightened supply especially in the seaborne iron ore market.

Price Outlook

  • The price of iron ore is expected to average between $70/MT to $72/MT next month.
  • Last year the Tangshan authorities imposed uniform output restrictions on all steelmakers, this year the Ministry of Ecology & Environment (MEE) has ordered that each steelmaker be given a restriction target dependent on their individual circumstance, which has resulted in the total reduction volume being less than that seen last year. With higher steel production levels, demand for feedstock is expected to be sustained and prices will see an overall rise in Q4 2018
  • In Q4 2018, prices are expected to rise despite the slowdown in demand towards the end of the year. The production cuts during the winter heating season will prevent any major price fall. Yearly average prices for 2018 is expected to average between $68-70 per MT, an decrease of 2-3 percent Y-o-Y compared to 2017's average. In Q1 2019, prices are expected to pick up once the restocking begins at the start of the year
  • In Q2 2019, during the labour day break will experience a slowdown in buying and trading activities for steel and its associated raw materials. This will put downward pressure on prices. China's largest steel -producing province - Baoding, Zhangjiakou and Langfang - will be cleared of steel production facilities by 2020. Another two cities - Chengde and Qinhuangdao - will see their crude steelmaking capacity reduced by 50 percent

Industry Best Practices 

Design

  • Integration with supplier in terms of design reduces the over all cost and helpsin leverage their expertise
  • Collaboration in casting desin and rapid tooling are adapted iin many foundaries

Quality  

  • The cost of rejections are reduced by focus on suppliers and sub-vendors with PPAP, APQP capability

Matrial purchase

  • Most of the OEM are now procuring the raw material  on behalf of their supplier
  • Savings to br redeemed on the while purchasing finished components

Labour 

  • Identifying suppliers with high levels of automation will enable high quality and consistency and can offset the labor cost

Integration

  • Having a number of levels in supply chain can lead to longer lead times and higher total costs
  • Choose suppliers with integrated machining and surface treatment facilities reduces the above issues

 

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