If you want to invest in metals, it is worthwhile to learn about several types of metals and diversify your investment (do not invest in a single type of metal at the risk of losing big if its price falls).
And even if cast iron does not seem to be a very interesting investment compared to other metals, it is still worth looking into the forecasts for its price to try to make a profit.
What is cast iron made of ?
Cast iron is essentially composed of iron and carbon, plus other compounds in small quantities, such as phosphorus or sulfur. What distinguishes it from steel is its high carbon content ranging from 2.1 to 6.67 % depending on the desired result.
But being essentially an alloy of iron and carbon, its price depends on the market price of the metals that compose it. Thus, if you find that forecasts favor an increase in the price of these alloys, expect the price of cast iron to rise, and vice versa.
A price highly dependent on its quality
The price of cast iron is highly dependent on the quality of this metal. Indeed, there are some families of cast iron whose price is somewhat higher than others, notably FGS cast iron (spheroidal graphite iron, or ductile cast iron), and FGL cast iron (lamellar graphite iron, or gray cast iron with lamellar graphite), which are highly sought after in the industrial sector. If you are an amateur investor, never forget to pay attention to this detail when you conclude a transaction.
At a scrap dealer, the kilogram of cast iron trades between 0.15 and 0.30 euro. Logically, the tonne trades starting at 150 euros. The cap on the price per tonne is not fixed at 300 euros, because higher-quality cast iron sells for more than that.
The cost of producing cast iron is still moderate since this alloy is still very abundant. Its smelting does not involve excessive expenses either since it is enough to add carbon at high temperature. Among ferrous metals, cast iron is the easiest to recycle and that is no exaggeration.
However, the price of this iron ore is correlated with the global economy, so its market is not entirely unshakeable. Its price falls when the economy is slowing, but rises as soon as it recovers. A recovery in demand from China should breathe life into the market, giving it a chance to regain ground over other highly demanded ferrous metals.
Is cast iron an unloved metal ?
Cast iron is a ferrous metal that doesn’t have much value compared to its peers. However, cast iron costs more than iron, due to its high ductility. The price of cast iron varies depending on the person who wants to take it back. You are strongly advised to sell it to a scrap dealer.
How to proceed with reselling cast iron ?
It is possible to recover cast iron in artistic ironwork workshops. Indeed, white cast iron is highly appreciated in this field because of its excellent resistance to wear and abrasion, as well as its incomparable castability, not to mention its aesthetic appeal.
Besides white cast iron, cast iron is highly valued in the automotive industry. You can therefore find it partially in engine blocks, calipers and disc brake brackets, brake drums, as well as flywheels, suspension components, camshafts, crankshafts, brake discs, etc… Otherwise, it is very easy to recover cast iron in the form of pipes and tubing, furniture, “solid” radiators, bathtubs, manhole covers… and many others.
Making a price comparison and a comparison of websites is highly recommended if you want to succeed in metal investments. The price per kilogram and per tonne of cast iron is set daily by the general market; however, you can impose your own price.
Many people get into reselling cast iron in order to make ends meet. The trick is not to sell as soon as you have a little, far from it. You must know how to be patient, so make sure to store it in a safe place.