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Casting demand improves in first quarter.


Recent interviews with casting users indicate that most casting user market sectors experienced increases in shipments in the first quarter of 2004.

Though the production of light vehicles fell 1.5% in the first quarter, growth in March was near 5%, and steady growth in subsequent quarters is expected to bring the annual vehicle production to 12.4 million, an increase of 4.8% over 2003. Medium to heavy truck and trailer In communications, a code or set of codes that make up the last part of a transmitted message. See trailer label.  production was up in the three months and this growth is expected to continue and increase shipments by 25% for the year. Orders lot freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers.

The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or
 cars in 2003 was almost double that of 2002, and are expected to result in a 40,000 car delivery year in 2004, providing impetus Impetus is a stimulus or impulse, a moving force that sparks momentum.

Impetus may also refer to:
  • Theory of impetus, an obsolete scientific theory on projectile motion, superseded by the modern theory of inertia
 to a sizeable gain in steel casting Steel casting is a manufacturing process in which molten metal is poured into a mold, allowed to solidify within the mold, and then the mold is broken and the solid piece is taken out.  demand

Based on these demands and other first quarter statistics, an overall increase of 4.6% is reforecast for the total metal casting Metal casting

A metal-forming process whereby molten metal is poured into a cavity or mold and, when cooled, solidifies and takes on the characteristic shape of the mold.
 shipments in 2004. A recent analysis of casting imports has resulted in new forecasts of Imports/ Demand ratios affecting casting shipment projections.

Gray Iron

Gray iron shipments are forecast to rise 2.3% in '04 to 4,851,000 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. .

Motor Vehicles--The conversion of blocks and heads to aluminum continues to accelerate and is expected to lower the average weight of gray iron per light vehicle to 206 lbs. in 2004. The use of iron in engine blocks is forecast to drop to 50% in 2005 while iron heads decrease to 7% of the light vehicles. The percentage of light vehicles that are classified as light trucks is maintaining its 60% level in 2004, thus delaying the conversion of some blocks to aluminum. Transplant transplant
 or graft

Partial or complete organ or other body part removed from one site and attached at another. It may come from the same or a different person or an animal. One from the same person—most often a skin graft—is not rejected.
 production, now approximately ap·prox·i·mate  
adj.
1. Almost exact or correct: the approximate time of the accident.

2.
 21% of the U.S. production of light vehicles, utilizes aluminum in 80% of the blocks and 100% of the heads.

Gray iron casting shipments for light vehicles were expected to grow slightly in 2004, however, the increase in the import to demand ratio to 0.28 has caused a reforecast to 1.12 million tons. a 3.3% loss from 2003. The rebound rebound (rē´bownd),
n/v 1. a recovery from illness.
n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus

rebound adjective
 of medium to heavy truck production in the first quarter is expected to continue throughout the year and increase gray iron shipments to this market sector by 25% in 2004

Internal Combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion.  Engines--The predicted increase in truck production in 2004 was expected to result in an increase in iron casting shipments for diesel engine manufacturers, however, imports of iron castings have risen to 50% of demand, causing lower shipment predictions along with an increase in foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies.  closings in this market sector. A revised forecast of 400,000 tons of gray iron shipments in this classification is indicated.

Metalworking Machinery---Gray iron consumption in machine tools continues to fall to new lows as this sector has moved offshore, reducing shipments of gray iron castings to 50,000 tons for machine tools and 102,000 tons for all metalworking machinery.

Valves & Fittings--The import to demand ratio has now risen to an estimated 0.37 for gray iron valve and fitting parts, keeping shipments down despite increases in demand. Shipments of 272,000 tons are forecast for 2004.

Pumps & Compressors--Growth in oil field equipment, construction and general industrial usage is expected to result in an increase of gray iron casting usage in these industries in 2004.

Ductile Iron Ductile iron, also called ductile cast iron or nodular cast iron, is a type of cast iron invented in 1943 by Keith Millis[1]. While most varieties of cast iron are brittle, ductile iron is much more ductile, as the name implies.

Total shipments of ductile iron castings are expected to increase 5.1% in 2004 to 4,436,000 tons (Table 1).

Pressure Pipe--Based on a good year in housing starts and commercial construction, along with an increase in exports, shipments of ductile iron pipe are expected to increase to 2,060,000 tons in 2004.

Motor Vehicles--The average weight of ductile iron castings per light vehicle is expected to drop to 184 lbs. as the conversion of suspension castings to aluminum increases. A continued high percentage of light truck production, however, should assist in a rise in shipments in 2004 to 1.1 million tons. Ductile iron usage in suspension castings is expected to drop to 45% of the light vehicles in 2005. Aluminum is also forecast to replace ductile iron in many differential cartier applications. Austempered ductile iron applications continue to grow as replacements of forgings gain.

The expected increase in the import to demand ratio to 0.20 is expected to keep shipments down in the future despite an increase in demand as light vehicle production increases. Ductile iron casting shipments for the medium to heavy truck market sector are expected to grow to 206,000 tons in 2004--a 20% increase over 2003.

Special Industry Machinery--The printing, plastic, paper and textile textile

Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well.
 machinery industries are expected to grow in 2004 and 2005. Ductile iron shipments are forecast to grow to 100,000 tons in 2004. A 2.2% annual growth rate of ductile iron shipments is forecast for the long term.

Farm Machinery & Equipment--Based on the forecast of a 3.0% increase in farm machinery production in 2004 and conversion of new applications to ductile iron, a 5.3% increase in shipments of ductile iron is forecast.

Steel

Steel casting shipments are forecast to grow to 1,148,000 tons in '04, a 9.6% rise.

Railroad--Based on forecasts by key industry persons, 40,000 freight car deliveries will be made in 2004. Based on this forecast and other forecasts for locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.

ALCO
  • See List of ALCO diesel locomotives
Baldwin Locomotive Works
  • See List of Baldwin diesel locomotives
 and other railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more.  applications, 448,000 tons of steel castings are to be shipped by U.S. metalcasters in 2004 for this market sector. The original estimate of 488,000 tons was made based on a 0.12 import to demand ratio and other estimates. The revised shipment of 448,000 tons was made on an estimated 0.18 import ratio. Future forecasts estimate a higher import ratio.

In 2003, orders for freight cars increased more than 60% over 2002. This factor plus an increase in orders in the fourth quarter of 2003 has been used as a basis for forecasting the increase to 40,000 car deliveries in 2004 and 48,000 deliveries in 2005.

Construction, Mining & Oil Field Equipment--The reduction of 50,000 tons in steel casting shipments was based on a more recent analysis of imports and increase in the import ratio to 0.15 in the three categories. It is now forecast that shipments of 350,000 tons are to be made in 2004 in these market sectors.

Corrosion Resistant Steels--Despite the increase in imports of stainless steel stainless steel: see steel.
stainless steel

Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat.
 valve components to 20% of demand, it is expected that corrosion resistant steel shipments are to grow to 89,000 tons in 2004

Aluminum

A revised forecast for aluminum die castings die casting

Forming metal objects by injecting molten metal under pressure into dies or molds. An early and important use of the technique was in the Linotype machine (1884), but the mass-production automobile assembly line gave die casting its real impetus.
 and permanent mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium.  and sand castings Casting is the process of production of objects by pouring molten material into a cavity called a mold which is the negative, or mirror image of the object, and allowing it to cool and solidify.  follows.

Aluminum Die Castings--Aluminum die casting shipments in '04 (Table 2) are forecast to increase by 8% over '03 levels to 1,338,000 tons. The slight downward revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features.  in the automotive sector is due to the reduced forecast for car production. Die castings represent about 57% of the total aluminum consumed con·sume  
v. con·sumed, con·sum·ing, con·sumes

v.tr.
1. To take in as food; eat or drink up. See Synonyms at eat.

2.
a.
 in automotive vehicles.

Aluminum Permanent Mold & Sand Castings--Aluminum permanent mold and sand castings are forecast to increase in 2004 by 9.3%. The accelerated conversion of iron engine blocks and cylinder cylinder, in mathematics, surface generated by a line moving parallel to a given fixed line and continually intersecting a given fixed curve called the directrix; each line of the family of lines forming the cylinder is called a ruling, or generator.  heads to aluminum has spurred the growth of these processes.

Copper-Base

Shipments of copper-base bronze bronze, in metallurgy
bronze, in metallurgy, alloy of copper, tin, zinc, phosphorus, and sometimes small amounts of other elements. Bronzes are harder than brasses.
 and brass brass, alloy having copper (55%–90%) and zinc (10%–45%) as its essential components. The properties of brass vary with the proportion of copper and zinc and with the addition of small amounts of other elements, such as aluminum, lead, tin, or nickel.  castings are forecast to rise by 2.3% in 2004.
Table 1. Ductile Iron 2003 Shipments, Original & Revised 2004 Forecasts
(thousands of tons)

                                                    Original   Revised
NAICS         Industry                       2003     2004       2004

33291         Valves & Fittings               215      222        222
331151        Pressure Pipe                  2010     2060       2060
333618        Internal Combustion Engine       80      103         94
33311         Farm Machinery & Equip.         114      124        120
333120        Construction Mach. & Equip.     187      203        203
333132        Oil Field Equipment              66       73         73
33351         Metalworking Machinery           41       42         43
33329         Special Industry Machinery       98      102        100
33391         Pumps & Compressors              82       86         86
333612        Gears, Power Transmission        26       29         29
3334          Refrigeration/A.C.               38       43         42
335312        Electric Machinery               15       18         18
33611, 3363   Light Vehicle                  1034     1117       1100
336120        Medium to Heavy Truck           164      229        206
              Other                            50       47         40

TOTAL                                        4220     4498       4436

Table 2. Aluminum Die Casting 2003 Shipments, Original & Revised 2004
Forecasts (thousands of tons)

                                                    Original   Revised
NAICS         Industry                       2003     2004       2004

33361         Internal Combustion Engine       78       87         85
333112        Lawn & Garden                    20       20         21
333991        Power Hand Tools                 27       28         28
33341         Computer & Office Equip.         46       48         48
3334          Refrigeration/A.C.               35       39         39
3352          Household Appliances             45       46         46
3361          Motor Vehicle                   731      822        800
3364          Aircraft                         19       21         21
              Other Aluminum Die Casting      238      253        250

Total                                        1239     1364       1338


RELATED ARTICLE: Examining casting supply.

The metalcastng industry has changed significantly in the last 50 years. In 1955, there were 3,100 metalcasting facilities with less than 20 employees and 3,050 with more than 20 employees, a total of 6,150. By 1985 the total had dropped to 4,010. Figure 1 shows the continued fall in suppliers of castings in the last 20 years to an estimated 2,420 plants in 2004.

[FIGURE 1 OMITTED]

The reduction of casting capacity in tons experienced in the same period has not been as dramatic because aluminum capacity has increased while gray iron and steel capacity has dropped off considerably. Figure 2 indicates the estimated revised breakdown of capacity and utilization utilization,
n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be
 for 2004.
Fig. 2. Shown is the estimated casting capacity and utilization in
2004.

                       Capacity (thousands
Metal                     of tons)(*)           Utilization(%)

Iron                          11700                    80
Steel                          1480                    78
Aluminum                       2950                    79
Copper Base                    400                     77
Magnesium                      150                     85
Zinc, Lead                     400                     80
Other Nonferrous                70                     78
Investment Cast.               200                     82

Total                        17,350                    79

* capacity is estimated based on 1 and 2 shift operations.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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Title Annotation:Casting Market Trends
Author:Kirgin, Kenneth H.
Publication:Modern Casting
Date:Jun 1, 2004
Words:1596
Previous Article:No more computers, please.(CEO Journal)
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