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zh China Pig Iron Market Update | Strong Cost Support Keeps Prices Firm
2025-10-20 17:17:24 hits：0
China Pig Iron Market Update: Strong Cost Support Keeps Prices Firm to Slightly Higher
Market Overview
Today, China’s pig iron market maintained a generally stable yet slightly bullish tone, with prices in some regions rising by about RMB 20–30 per ton. Market confidence remains supported by strong raw material costs, steady steel industry demand, and improving macroeconomic expectations.
Macroeconomic Developments
On October 20, the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing. General Secretary Xi Jinping delivered a report and explained the “Proposals on Formulating the 15th Five-Year Plan for National Economic and Social Development (Draft)”, providing direction for future industrial and economic policies in China.
According to data from the National Bureau of Statistics, in September 2025:
Crude steel output reached 73.49 million tons (down 4.6% YoY)
Pig iron production totaled 66.05 million tons (down 2.4% YoY)
Finished steel output reached 124.21 million tons (up 5.1% YoY)
From January to September:
Crude steel output totaled 746.25 million tons (down 2.9%)
Pig iron output 64.586 million tons (down 1.1%)
Finished steel output 1.104 billion tons (up 5.4%)
Overall, steel output contraction is narrowing, while downstream demand for foundry and construction materials remains resilient.
Futures Market Performance
At the close of trading:
Iron ore dropped 4.5 points to 767
Coke rose 27.5 points to 1710
Coking coal increased 31.5 points to 1216
Rebar steel fell 1 point to 3045
Hot-rolled coil decreased 4 points to 3215
The mixed performance reflects the ongoing tug-of-war between cost pressures and market demand recovery.
Cost and Supply–Demand Analysis
Rising coking coal prices have significantly pushed up the pig iron production cost. Steel mills continue to face rigid demand for coke while maintaining low inventories, prompting major coking companies to initiate new rounds of price hikes.
Although weak finished-steel prices are squeezing mill margins, the dual impact of high raw material costs and stable consumption suggests that this round of coke price increases is likely to be accepted by the market.
Meanwhile, iron ore prices remain in a narrow range, continuing to provide a strong cost floor for pig iron.
On the supply side, Chinese pig iron producers maintain low or negative inventories, showing a strong willingness to hold firm on prices.
However, foundries and casting enterprises face limited new orders and are cautious in procurement due to high costs. If macroeconomic optimism continues after the plenary session, the iron ore and coke markets are expected to strengthen further, enhancing confidence in the pig iron sector.
Market Outlook
Overall, supported by strong production costs and improving sentiment, China’s pig iron prices are projected to remain firm with slight upward movement in the near term.
For reliable and consistent pig iron supply from China, Tiegu Export provides high-quality foundry-grade pig iron and ductile iron materials to global buyers, ensuring stable sourcing for foundries and steel plants worldwide.
