Cast Iron Price
Many clients asked us the cast iron price
per kg or per ton, but it is very difficult to offer an accurate
price before considering many factors and requirements. Herein, let
us make a brief introduction to the cast iron price composition,
cost calculation and price adjustment.
Composition of Cast iron
When we talked about cast iron prices, normally, we meant the prices
of cast iron products, or iron castings. Normally, clients will
require the foundries to quote FOB China, and CIF destination port,
so we should consider many price components least as the followings:
a) The cost of rough castings, or raw castings.
b) The cost of rough machining, or finish machining.
c) The cost of heat treatment (optional).
d) The cost of surface coating, painting or others.
e) The cost of packing, customs declaration and inland delivery.
f) The cost of sea freight and issuance.
The FOB price will include the above costs from a) to e), the CIF
price will include the costs from a) to f).
2. How to
calculate cast iron prices?
The price calculation of cast iron products is a very complex works,
you need to consider many technical and production issues, so the
experience is very important. The following is the normal process to
calculate the iron casting prices:
a) Checking the required cast iron grades, to consider if you
could produce the material very well. The prices of gray iron and
ductile iron are different, and you may not produce some high
b) Checking the drawings or photos,
especially the casting structures, rough casting tolerance, unit
weight, surface smoothness requirements and annual demand. These
factors will be necessary to consider the suitable casting
processes, and pattern types, then you will appropriately get the
rough casting prices. Please attention, the rough weight is the base
of the rough casting prices, so you need to assure or calculate the
rough weights if the clients have not told you.
c) Checking the machining drawings,
especially the denoted machining tolerance, unspecified tolerance,
machining positions, degree of finish. You need to know some
machining knowledge and the capability of your machining equipments.
For the complex machining, only the professional machining engineers
could calculate the accurate prices.
d) Checking the special requirements
to the heat treatment, hardness, all other special requirements
to the mechanical and chemical requirements. Heat treatment will
increase the production costs, but other requirements may not affect
the prices, but need to consider if you could meet the requirements.
e) Checking the surface coating,
primer painting is the cheapest, then by the sequence of more
expensive, it will be flat finish painting, gloss painting, electro
galvanizing, powder painting, heat resistance paint, hot dip zinc
f) Checking the packing requirements,
so calculate the packing and inland delivery costs. Inland
delivery means the transportation costs from your factory to the
local seaport. For FOB prices, these costs should be included.
g) Checking the sea freight from your
local port to the destination port designed by clients. If you
can not find the accurate sea freights from internet, then you may
need to inquire from your familiar shipping agent.
Calculation of casting prices is not an easy work, which require the
price maker to have experience to casting process, production costs,
machining know ledges, and other related information, so normally,
the casting and machining engineers and production manager should
involve the quotation.
3. What will
affect the price adjustment?
The price adjustments to iron castings is inevitable. After a period
or before you placing new orders, the casting manufacturers may
request increasing prices. The followings are the main factors that
will affect the prices.
a) The price increasing of pig iron.
Pig iron is the main material for iron castings, and its cost has
taken about half of the total rough casting costs, therefore, the
price increasing of pig iron will directly affect the final prices
of iron castings. In the past years, the pig iron prices were not
stable, therefore, the casting manufacturers may rise the price
adjustment issues because of it. On our website iron-foundry.com,
you could see the latest pig iron price.
b) The exchange rate of USD to RMB.
Chinese factories need to pay all production costs by RMB yuan,
therefore, therefore, their production costs were calculated by RMB.
If the exchange rate changed, then it will directly affect their
c) The salary of workers.
In China, normally, the salaries of workers will be increased during
the end of each year, or the early of each year. If the costs of
labors have been increased largely, then it will affect the prices
of iron castings.
d) Other influence factors.
Other influence factors to cast iron prices include the costs of
resin material, alloy materials, electricity or coal, transportation
costs, sea freights, painting and packing costs.
The pig iron prices and exchange rate will affect the price
adjustment seriously and frequently. The labor costs and other
factors will affect the price periodically. In other words, by the
early of each year, the casting manufacturers may request the price
adjustments because of the increasing labor costs and other
influence factors in the past year.
4. The Latest
Cast Iron Prices
In our foundry website www.iron-foundry.com, we listed the latest
cast iron prices according to the different sand casting processes,
and cast iron materials. We are updating them timely, and hope they
could help the iron casting buyers to learn about the approximate
change of cast iron prices.