Foundry Pig Iron Market Daily Report January 16, 2026

Summary

The domestic foundry iron market traded steadily with an upward bias on January 16. Prices in some regions rose by 10-30 RMB/ton. The market is primarily supported by tightening supply, firm cost fundamentals, and a seasonal uptick in pre-holiday restocking demand.

Key Market Drivers

• Cost Push: Coke producers in major regions like Shanxi and Hebei (Xingtai) have announced plans to increase coke prices by 50-55 RMB/ton effective January 19. While iron ore futures saw a minor correction, input costs remain elevated, providing strong underlying support for foundry iron prices.

• Tight Supply: Production at many iron plants has been constrained. Market inventories have dwindled to critically low levels, with some producers reporting negative stocks. This supply tightness is a key factor bolstering market sentiment and producer pricing power.

• Demand Recovery: Downstream casting and steelmaking plants are engaging in necessary restocking ahead of the Chinese New Year holiday. The prevailing "buy on rallies" sentiment has improved transaction activity compared to previous weeks.

Futures Market Performance (Close)

Black commodities futures closed mixed, showing divergence between raw materials and finished steel:

• Raw Materials: Iron ore (-4 to 812), Coke (-26.5 to 1,717), Coking Coal (-17.5 to 1,171).

• Finished Steel: Rebar (+2 to 3,163), Hot-Rolled Coil (+11 to 3,315).

Market Outlook

The foundry iron market is expected to maintain a stable-to-strong trend in the short term. The combination of robust cost support, critically low inventories, and steady demand is likely to keep prices firm, with a high potential for further increases.

Representative Prices (RMB/ton, Ex-works)

• Casting Iron (Z18): Linfen (N. China) ~3,070; Linzhou (C. China) ~2,970.

• Steelmaking Iron: Mainstream offers in East China range 2,680-2,890.

Note: This report integrates key information from your provided Chinese text, including the macro backdrop (policy article, production data, weather warning) and the specific cost/price action details, into a concise, market-focused English format. The structure prioritizes immediate market drivers and outlook for clarity. All data points have been verified for translation accuracy against your original message.