Global Market Outlook on Sand Casting

  • China, US, India, Japan, and Germany are ranked as the top five sand castings producing countries 
  • Nearly, 70 percent of ferrous castings and 25 percent of the non-ferrous castings are casted using the sand casting process

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Global Sand Castings Market Maturity

  • China contributes to nearly 45–47 percent of the global sand castings production. In case of the ferrous castings, China is followed by India, whereas the US takes the second position in producing non-ferrous castings 
  • In general, the sand casters are small and medium-sized enterprises 
  • Automobile and industrial machinery are two major end-use industries, which serves as a key demand driver for the sand castings production

 Global Sand Castings Industry Trends

  • The foundry industry is fragmented and the foundries compete by providing value-added services, like machining, heat treatment, and other processes
  • The environmental regulations in the developed nations are very stringent, and hence, the foundries are likely to invest more on environment-friendly practices, like recycling of sand, usage of silicate binder, etc. 

Regional Market Outlook-US

  • Contraction in the industry: The number of iron and steel foundries declined, whereas the non-ferrous foundries were stable. Medium and small-scale enterprises dominate the supplier landscape 
  • Demand from the automotive, railways, energy & construction sectors has been the main demand drivers through these years

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 explain the variations in primary cost drivers, which 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 the 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