Bearing Steel Market to Run Weakly in June
Resource from: CBCC Likes:2958
Jun 07,2010
Summary: Reviewing the bearing steel market in May, the bearing steel price in first half of April firmed up and started to fall in the latter half of the month, which was mainly represented by hot rolled non-annealed steel. Up to the end of May, the countrywide average price of GCr15 continuous casting non-annealed steel of 50mm is 5,918 yuan/ton; the countrywide average price of GCr15 die-casting annealed steel of 100mm is 7,482 yuan/ton, which was mainly influenced by the continuous weak trend of ordinary steel and fine steel market. Even though the sales condition of the bearing steel enterprises was good, in the whole steel environment, the end users started to keep the attitude of wait-and-see, especially, the maximum price difference between bearing steel and 45# carbon structure round steel was enlarged to 1,500 yuan/ton. That was not reasonable. The downstream users formed resentment. It is both inevitable and necessary that the bearing steel enterprises will reduce the EXW price of bearing steel in June.
1. Bearing Steel Output in China
The output of crude bearing steel from Jan. to Apr. in 2010 of China was about 936,000 tons, which increased 58.1% based on that in the same period last year; the output of bearing steel from Jan. to Apr. 2010 was about 922,000 tons, which increased 70.9% on a year-on-year basis; in Apr., the output of crude bearing steel in China was about 272,000 tons, which increased 21.0% on a month-on-month basis; the output of bearing steel was about 263,000 tons, which increased 12.6% on a month-on-month basis. (See picture 1)
Picture 1：The Change of Bearing Steel Output in China from Jan. to Apr. 2006-2010
Table 1: Crude Steel Output of China Bearing Steel Enterprises from Jan. to Apr. in 2010
Table 2: Sequence of Steel Output of Bearing Steel Enterprises in China from Jan. to Apr. 2010
According table 1 and table 2, the enterprises of which the bearing steel output from Jan. to Apr. ranked in the first four places were still Zhongxing Special Steel (including Xingcheng Special Steel and Xinye Steel), Dongbei Special Steel, Shijiazhuang Steel and Xigang Steel. The output of the bearing steel in each steel plant in April has obviously increased based on that in March.
2. The Market Performance of Bearing Steel in May
The operation situation and characteristics of bearing steel in May, 2009 was manifested on the following aspects:
(1) The export trend of bearing steel in China remained very strong in April.
According to the data from 9 main bearing steel enterprises in China, this year the export of bearing steel in April was 18,021 tons, which decreased compared with the 18,966 tons in March. The export of bearing steel in April was mainly from Xingcheng Steel and Dongbei Special Steel, of which the export was separately 11,574 tons and 6,228 tons.
Picture 2: Change of Bearing Steel Export of the Main Special Steel Enterprises in China in April from 2008 to 2010
(2) The bearing steel price in May started to fall.
The bearing steel price started to go weakly in the latter half of May. As the continuous weak trend of ordinary steel price and fine steel price, the bearing steel market was impacted. Even though the market stock kept the normal level, the downstream users started to wait and see gradually, which caused the obvious decreasing of stricken deal.
Picture 3 The Average Trend of Bearing Steel Price in China from 2008 to 2010
According to the data from Mysteel.com, up to the end of May, the countrywide average price of GCr15Φ continuous casting non-annealed steel of 50mm was 5,981 yuan/ton; the countrywide average price of GCr15Φ die-casting annealed steel of 100mm was 7,482 yuan/ton. The change of hot rolled non-annealed material was obvious and the annealed material has changed a little.
Table 3: Sales Price Summary of Bearing Steel Enterprises in East China Market in May, 2010 (medium continuous non-annealed steel bars)
3. Bearing Steel Market to Run Weakly in June
(1).On the aspect of raw material, the price of most raw materials fell in May; especially, the price of iron ore and pig iron fell obviously.
Picture 4: Average Price Trend of High Carbon Ferro-chrome from 2008 to 2010 in China
(2).On the aspect of steel plant and market, the orders in the steel plants in May was well, and the production situation was normal. But the falling of market has brought some pressure to the steel plants and the EXW price of the bearing steel in the latter period will be adjusted. The market stock was normal and the merchants sold actively, but the orders in the latter period will possibly decrease to some extent.
(3).On the aspect of downstream users, the purchasing activity of the downstream users decreased gradually since the beginning of May and held the attitude of wait-and-see. Generally, the bearing steel price in June will fall to some extent, and the steel plants and the market will have some pressure.
Picture 1：The Change of Bearing Steel Output in China from Jan. to Apr. 2006-2010
Table 1: Crude Steel Output of China Bearing Steel Enterprises from Jan. to Apr. in 2010
Table 2: Sequence of Steel Output of Bearing Steel Enterprises in China from Jan. to Apr. 2010
According table 1 and table 2, the enterprises of which the bearing steel output from Jan. to Apr. ranked in the first four places were still Zhongxing Special Steel (including Xingcheng Special Steel and Xinye Steel), Dongbei Special Steel, Shijiazhuang Steel and Xigang Steel. The output of the bearing steel in each steel plant in April has obviously increased based on that in March.
2. The Market Performance of Bearing Steel in May
The operation situation and characteristics of bearing steel in May, 2009 was manifested on the following aspects:
(1) The export trend of bearing steel in China remained very strong in April.
According to the data from 9 main bearing steel enterprises in China, this year the export of bearing steel in April was 18,021 tons, which decreased compared with the 18,966 tons in March. The export of bearing steel in April was mainly from Xingcheng Steel and Dongbei Special Steel, of which the export was separately 11,574 tons and 6,228 tons.
Picture 2: Change of Bearing Steel Export of the Main Special Steel Enterprises in China in April from 2008 to 2010
(2) The bearing steel price in May started to fall.
The bearing steel price started to go weakly in the latter half of May. As the continuous weak trend of ordinary steel price and fine steel price, the bearing steel market was impacted. Even though the market stock kept the normal level, the downstream users started to wait and see gradually, which caused the obvious decreasing of stricken deal.
Picture 3 The Average Trend of Bearing Steel Price in China from 2008 to 2010
According to the data from Mysteel.com, up to the end of May, the countrywide average price of GCr15Φ continuous casting non-annealed steel of 50mm was 5,981 yuan/ton; the countrywide average price of GCr15Φ die-casting annealed steel of 100mm was 7,482 yuan/ton. The change of hot rolled non-annealed material was obvious and the annealed material has changed a little.
Table 3: Sales Price Summary of Bearing Steel Enterprises in East China Market in May, 2010 (medium continuous non-annealed steel bars)
3. Bearing Steel Market to Run Weakly in June
(1).On the aspect of raw material, the price of most raw materials fell in May; especially, the price of iron ore and pig iron fell obviously.
Picture 4: Average Price Trend of High Carbon Ferro-chrome from 2008 to 2010 in China
(2).On the aspect of steel plant and market, the orders in the steel plants in May was well, and the production situation was normal. But the falling of market has brought some pressure to the steel plants and the EXW price of the bearing steel in the latter period will be adjusted. The market stock was normal and the merchants sold actively, but the orders in the latter period will possibly decrease to some extent.
(3).On the aspect of downstream users, the purchasing activity of the downstream users decreased gradually since the beginning of May and held the attitude of wait-and-see. Generally, the bearing steel price in June will fall to some extent, and the steel plants and the market will have some pressure.
(CBCC)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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