Since year 2025, the price of major casting raw materials such as aluminium alloys and copper alloys keep increasing. Among them, the price of electrolytic aluminium has increased by 18% year -on-year, and the price of Silicon has exceeded 28 thousand RMB per ton, which has directly led to the an increase of 12-15% in the production costs of casting enterprises year-on-year.
- Key Alloy Element Price Fluctuation Characteristics
* Aluminium Materials
The price range for raw aluminium alloy ingots has reached 20400-20800RMB/ton, significantly driven by energy cost. European Aluminium Enterprises have reduced production due to natural gas shortage, exacerbating the global supply shortage.
* Alloy Adding Elements
Silicon as a major element which improves liquidity, the price rise by 22%, directly impacting the cost of Aluminium-Silicon alloys.
Wile copper (Cu) enhances the mechanical properties, its price fluctuations increase the cost sensitivity of cast copper alloys.
* Trace Elements
The procurement cost of grain refiners such as Cr and Ti has increased by 15% due to the growing demand for specialty steels.
- Empirical Analysis of Price Transmission Mechanism
Based on dynamic model calculations, a 10% increase in aluminium prices will increase the cost of die casting parts by 7.2%. Taking automotive chassis casting as an example, the cost per vehicle will increase by 540RMB, which put significant pressure on automakers engaged in large-scale production.
- Impact on Casting Process and Product Structure
* Process Adaptability Adjustment
In order to control the production cost, some companies have increased iron (Fe) content to 0.8-1% in the formulation to balance demolding performance and economy.
* Material Substitution Trends
For the non-critical components, the trend of ductile iron replacing aluminum-magnesium alloys is evident, with the demand for cast iron materials increasing by 3.5% quarter-on-quater in the first quarter of 2025.
* Technological Upgrades Accelerate
By employing topology optimization and 3D printing technology to achieve weight reduction design, some companies have reduced the amount of aluminium used per piece by 8-12% through structure optimization.
- Supplying Chain Collaborative Response Strategy
Establish a price linkage mechanism and sign floating price contracts with upstream suppliers;
We implemented “gram-level cost control” and improved material utilization to over 92% through refined casting system design;
Develop low-cost formulations such as high-silicon aluminium alloys, and reduce the amount of precious metals added by optimizing the composition while ensure fluidity.
The global aluminium alloy casting market is projected to reach $135.2 billion by 2026. As the largest producer, China needs to establish a multi-tiered raw material reserve system. It is recommended that industry associations take the lead in developing a “Casting Raw Material Price Index” to guide the procurement decisions of small and medium-sized enterprises.