China Pig Iron Market Update

1. Market Overview

The domestic pig iron market remained stable today with a wait-and-see sentiment.

2. Macro Environment

• Land Reserve via Special Bonds:
  According to monitoring by the China Index Academy, as of August 18, more than 4,300 idle land plots have been publicly listed for potential repurchase using special bonds, covering an area of over 220 million square meters. Multiple provinces and cities have issued or plan to issue related special bonds totaling over RMB 150 billion, accounting for 27% of the intended total repurchase amount.

• Steel Industry Outlook:
  Xia Nong, Vice President of the China Iron and Steel Association, stated that with continued national support for output control and measures to comprehensively address “involution” gradually being implemented—particularly as steel enterprises enforce the “Three Principles of Business Conduct”—the steel industry is expected to maintain a stable and positive trajectory.
  Globally, around 80% of steel demand is concentrated in construction, machinery, and automotive sectors, with the structural pattern likely to remain steady. In China, domestic steel consumption has declined from nearly 1 billion tons in recent years to 892 million tons, and is expected to continue to decline slowly. However, before 2030, consumption is still projected to remain above 800 million tons.

3. Futures Market Performance

As of market close, key ferrous futures weakened:

• Iron ore: down 5.5, settling at 770

• Coke: down 0.5, settling at 1678.5

• Coking coal: down 2, settling at 1162

• Rebar: down 11, settling at 3119

• Hot-rolled coil: down 29, settling at 3361

4. Cost Side Developments

• The seventh round of coke price hikes has been implemented.

• Major steel mills in Hebei set new bid prices effective August 22:

• Wet coke: +RMB 50/ton

• Dry coke: +RMB 55/ton

• Iron ore prices remained range-bound, providing stronger cost-side support.

5. Supply and Demand Dynamics

• Supply Side:
  Some enterprises have halted blast furnaces or scheduled maintenance, creating expectations of output reduction. With plant inventories staying at low levels, overall supply pressure remains manageable.

• Demand Side:
  Activity continues to be weak, with downstream purchasing interest subdued and little sign of a short-term rebound. The market trading atmosphere is lackluster, while the weakening futures market has further reinforced a wait-and-see attitude. Some traders have slightly lowered offers to facilitate deals, leading to a disordered quotation range.

6. Outlook

Overall, the pig iron market is expected to continue a stable and wait-and-see pattern next week, with prices likely to remain under short-term pressure and show a choppy trend.

Blog Author Profile

DAWN | Pig Iron & Castings Procurement Advisor
18 years in the foundry trenches give me an edge: I know how pig iron’s chemistry impacts casting quality and can troubleshoot defects like cracks and porosity. With a 1M MT/year pig iron and 60k MT/year casting output from our in-house factory, plus 200+ verified suppliers on our platform, we offer fast price comparisons. Expect a 24-hour inquiry response—my goal? Not just closing deals, but being your go-to partner in the foundry world.

📧zbw@tiegu.net