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.
1. Price 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
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 grades.
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 galvanizing.
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 profit.
c) The salary of workers.
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.