US Grey Cast Iron Price Increases in Mid-June Amidst Rising Demand

In the week ending June 16, the US Grey Cast Iron prices showcased a bullish trend in the domestic market owing to the increased demand from the downstream automobile sector and a rising need for the country's Infrastructural development. According to the market sources, the domestic demand for Grey Cast Iron from the downstream automobile industry has increased by 8.2% this week as the Tesla automobile was up 9% due to increased automotive demand and sales in the US 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 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 of 1.07% in sales of heavy trucks in May 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 sales of two-wheeler automobiles were facing a pessimistic sentiment in the US market as it decreased by -0.98% in May. Thus, Grey Cast Iron is confronting higher demand in the US market.

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, hydraulic pumps, and motors. Moreover, the increasing need for safe drinking water has increased the working rate in US water treatment plants. This has increased the demand for Grey Cast Iron as they are used in hydraulic pumps and valves. Additionally, the 'Zero Liquid Discharge' is a wastewater management used in the US water treatment plant in Illinois, USA, which has increased demand for Grey Cast Iron pumps part in the local market.

The upgradation in the US foundry industries has provoked the increased production of Grey Cast Iron automotive parts. The Tooling Tech Group, a major producer of automated assembly equipment like gears, shafts, and engine compressors for the downstream US automobile industry, has started using the Computer Numerical Controlling (CNC) technology that has increased their casting production rate. Additionally, the Charlotte Pipe and Foundry Company, a member of the US Automated Financial System, has increased its Grey Cast Iron foundry activity by acquiring the Neenah Foundry Enterprise, which has specialized for 150 years in the Grey Cast Iron construction foundry. These advancements in technology and new deals in foundry industries have increased usage and ultimately inched the price of Grey Cast Iron in the US spot market upward.

According to ChemAnalyst, the price of Grey Cast Iron will show a bullish trend in upcoming months as the demand from the downstream automobile machinery industry and renewable energy sector will surge in the US spot market. The demand for hydraulic pumps will increase from the rising water treatment plant needs in the US spot market. As a ripple effect, the downstream inquiries will increase, which result in higher Grey Cast Iron prices in the domestic market.