Howard Ding, Sales Manager

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Aluminum casting cost drivers

From the aluminum price per pound to the price of a finished casting: which layer a number belongs to, what actually drives the piece price, and how to compare two quotations on the same scope.

Which number is being quoted

An aluminum price per pound or per ton is a starting point, not a purchase price. It is one layer of a stack, and most disagreements between a buyer and a supplier come from comparing two different layers.

LayerWhat it representsWhat it excludes
Exchange benchmarkGlobal primary aluminum price per metric ton (LME)Delivery, alloying, form, manufacturing
Regional premiumPhysical delivery and regional supply (in North America, the Midwest Premium)Alloy surcharge, fabrication
Alloy and formComposition of the grade; ingot, billet or sheetMelting, scrap handling, forming
Finished castingMetal plus melting loss, yield, tooling, machining, finishing, inspectionNothing: the number you pay

Price per ton ÷ 2,204.62 = price per pound. That converts units; it does not add the premium.

What actually drives a casting's piece price

  1. Metal per shot. Part weight plus gates, overflows and biscuit; yield is the share that ends up in the part.
  2. Cycle time and machine size. Wall thickness sets solidification time; projected area sets the machine tonnage.
  3. Cavities. More cavities lower the piece price and raise the tool price.
  4. Scrap rate. Leak, X-ray and dimensional rejects are paid for by the good parts.
  5. Heat treatment. T6 adds furnace time and handling, and often straightening and a dimensional check.
  6. Machining. Number of setups, features and stock removed; often the largest single line.
  7. Finishing and masking. Coating, masking of sealing faces and threads.
  8. Inspection and testing. 100% leak testing, X-ray sampling, reports.
  9. Packing and freight. Protection of machined faces, carton or crate, Incoterm.

Compare two quotations line by line

Fill in from each quotation. Where a supplier did not quote a line, mark it "not included", not zero.

LineQuote AQuote BSame scope?
Alloy and standardenterenteryes / no
Casting (per part)enterenteryes / no
Heat treatmententerenteryes / no
Machiningenterenteryes / no
Finishingenterenteryes / no
Leak test and X-rayenterenteryes / no
Tooling, life, cavitiesenterenteryes / no
Samples and FAIenterenteryes / no
Packing and Incotermenterenteryes / no
Metal price basis and adjustment clauseenterenteryes / no

Where design changes reduce cost

  • Even wall sections: shorter cycle, fewer shrinkage rejects
  • Fewer slides and undercuts: lower tool cost and maintenance
  • Machining only where the function needs it: cast to near shape elsewhere
  • Datum targets on cast surfaces: fewer setups
  • Acceptance zones instead of whole-part limits: fewer false rejects
  • Masking only real sealing and contact faces

Metal price adjustment

For repeat orders, agree how the metal line follows the market: the benchmark and premium used, the reference date, the adjustment interval, and the weight it applies to (gross shot weight or net part weight). This keeps the conversion cost fixed and the metal cost transparent. For clause wording, see aluminum price adjustment clauses for casting quotes.

Casting weight calculator Tooling cost and lead time

Questions about casting cost

How much is aluminum per pound?
The exchange benchmark is quoted per metric ton on the LME; divide by 2,204.62 for a per-pound figure. Delivered metal adds a regional premium and an alloy and form premium, and a casting adds manufacturing costs.
What drives the price of an aluminum casting?
Metal per shot and yield, cycle time and machine size, cavities, scrap rate, heat treatment, machining, finishing, inspection and packing.
How do I compare two casting quotations?
Line by line on the same scope: alloy, casting, heat treatment, machining, finishing, testing, tooling, samples, packing and the metal price basis.

Send the drawing for a quotation

Include quantities and the full scope. Howard Ding replies with an itemised quotation.

Send a drawing for DFM review

What happens next

  1. Howard Ding confirms receipt and asks for anything missing from the package.
  2. Engineering reviews geometry, alloy and acceptance criteria and proposes a route: squeeze casting, die casting, or a reason neither fits.
  3. You receive the quotation with tooling, samples and validation listed separately from the part price.