The sluggish market in the casting industry is expected to be under pressure in the short term

According to relevant data, the prices of the domestic casting industry continued to decline after May, especially with the most serious fall in cast iron prices. Why is the casting market so unsatisfactory recently? There are two main reasons: First, the demand in the downstream market is weak. This year, as of now, the foundry industry in all regions of the country has been sluggish, and business orders have fallen sharply compared to previous years. Most of the companies did not show signs of improvement. Second, casting manufacturers have increased substantially in the past two years, leading to excess production capacity. In the current situation where demand is not strong, manufacturers have no choice but to continue to reduce profits.

On the macro level, the central bank suddenly announced a rate cut of 0.25 percentage points on the 10th of this month, which will have a greater stimulating effect on the market, but for the casting industry, the financial pressure may be somewhat eased, however, its demand for the entire casting market It is not obvious that the total cost of use will be boosted, and demand will still be difficult to improve. According to analysis by relevant experts, the price of the national casting industry will face certain downward pressure in the short term.