Situation of Iron Casting
Suppliers in China
are many iron casting suppliers in China, and most
of them are exporting
iron castings and
steel castings to
overseas every years. In the past, these foundries
had a good time for development. However, in recent
years, their situation has become very difficult.
unstable prices of pig iron.
The pig iron
prices are the base of cast iron, and has a direct
affection to the costs
of iron castings, so to the prices of iron castings. In recent years,
the pig iron price has increased from 403 USD/ton in
April, 2010 to 623 USD/ton in Jan. 2011. Moreover,
the pig iron price is still increasing day by day.
Some iron foundries are difficult to control the
production costs now.
unstable exchange rate of USD to RMB.
Because of the
continuous appreciation of RMB, the exchange rate of
USD to RMB has reduced from 6.81 to 6.60 in 2010.
The 3% devaluation has caused some iron foundries
closed down. Nowadays, the exchange rate is still
reducing. It is difficult to estimate the level of
exchange rate in 2011, but one thing for sure, the
exchange rate will continuously reduce in the new
year, and this will be another bad factor to
3. The increased workers' salaries.
continuous appreciation of RMB, and increased prices
of commodities in China, the salaries of workers
have increased largely, according to our estimation
for metal casting fields, the salaries have
increased about 30% to 35%, which will cause the
increase production costs to metal foundries.
current situation for
iron casting suppliers in China is very
difficult now, and maybe will be more difficult in
2011, we truly hope the stable pig iron prices and
exchange rate to make metal foundries survive. After
all, the metal
castings are the base of industries, if the
most of metal foundries were closed down, all
manufacturers and suppliers in China and overseas
will suffer a terrible loss.