Bearing Steel Market in China will still Operate in Weakness in October 2011
Resource from: CBCC Likes:3059
Oct 12,2011
Summary: Look back to the bearing steel market in September, the price for GCr15 continued to keep the decline trend of last month, and the overall market still operated in weakness, while the price slightly improved as for the price for some species in southern regions highly declined compared with the prior period. Up to the end of September, the national average price of GCr15 continuous casting non-annealed steel of 50mm was 6,271 yuan/ton, dropped about 11 yuan/ton compared with the price in last month; the national average price of GCr15 die-casting annealed steel of 100mm was 7,893 yuan/ton, dropped 28 yuan/ton. The overall steel market was under the condition of weakness in September, meanwhile the market deal was light, the demand was not sufficient, and most merchants were not active for the post market. It is estimated that bearing steel market in October will still operate in weakness, meanwhile the price may continue to drop.
Firstly、The domestic production situation of bearing steel
The domestic production capability of bearing steel crude steel was about 2.355 million tons from January to August in 2011, increased by 16.2% compared with the same period of last year; the output of bearing steel was 2.207 million tons, rose by 12.4% compared with the same period of last year. In August, the output of bearing steel crude steel was 235,000 tons, meanwhile the output of bearing steel was 234,000 tons.
Picture One: The national bearing steel (material) production situation from January to August from 2008 to 2011
Data Resource: MRI
It is learned from Picture 1 that the output of bearing steel (crude steel) has dropped for two months, however, it has increased compared with the output in 2010, meanwhile the output of crude steel in August 2011 increased 16.2% compared with the same period of last year, while the output in July increased 14.2%.
Table One: The national crude steel production situation in bearing steel manufacturers from January to August in 2011 (Unit: ton)
From Table One, we can saw that the first three for bearing steel output from January to August in 2011 were Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel ), Dongbei Speical Steel and Juneng Steel, the output for Nanjing Steel dropped to the fourth place from the original third place in last month. (Sha Steel just counted the yield of Huai Steel)
Secondly、Bearing Steel Market Performance in September
The price of bearing steel was weak in September, and the overall price slightly decreased, while price in southern regions significantly declined in the prior period. The overall bearing steel market operated in weakness in September with the stable market inventory, meanwhile the deal has picked up compared with the previous month due to the influence of holidays and other factors by the end of this month. The specific condition of bearing steel in the domestic various regions in this month were as follows:
Hangzhou Market: the price in this region slightly improved in September with the common market deal. Up to the end of September, the average transaction price of small size GCr 15 (continuous casting non-annealed steel) was between 5,900 yuan/ton and 6,000 yuan/ton, and the GCr15 die-casting annealed steel was between 7,650 yuan/ton and 7,750 yuan/ton.
Luoyang Market: the price in this region basically kept stable with the common market deal. Up to the end of September, the average transaction price of small size GCr 15 (continuous casting non-annealed steel) was between 6,200 yuan/ton and 6,300 yuan/ton, and the GCr15 die-casting annealed steel was about 7,800 yuan/ton.
Xi'an Market: the price in this region was weak, meanwhile the market deal slightly improved. Up to the end of September, the average transaction price of small size GCr 15 (continuous casting non-annealed steel) was not sufficient, and the GCr15 die-casting annealed steel was between 7,750 yuan/ton and 7,800 yuan/ton.
Picture Two: Average price trend for the domestic bearing steel from 2009 to 2011
Data Resource: MRI
According to the statistics from Mysteeel.com: up to the end of September, the national average price of GCr15 continuous casting non-annealed steel of 50mm was 6,271 yuan/ton; the national average price of GCr15 die-casting annealed steel of 100mm was 7,893 yuan/ton.
Table Two: Sales price summary of bearing steel manufacturers in East China (standard continuous casting non-annealed steel bar ) unit: yuan/ton
From Table Two, the bearing steel price in East China mixed with increasing & decreasing in September, and the overall market was weak. However, there was too much decline pressure for southern regions in the prior period, thus slight rose could not represent that the market has truly out of the decline channel, meanwhile it did not play a promoting role in transaction and delivery.
Thirdly、The price of bearing steel narrowly shocked
1.In the aspect of raw material, the price for high-chrome in September dropped to 8,300 yuan/ton, declined about 200 yuan/ton compared with the price in last month, and it will continue to drop in short term. Besides, the price for iron ore, pig iron, scrap steel and other raw material was also weak, the supporting role for raw material on cost has not existed.
Picutre Three: The chart for the average price of domestic high-carbon ferrochrome from 2010 to 2011
Data Resource: MRI
2. As for steel plant, the first fifth steel plant for its output in August did not make any adjustments for bearing steel price in September, the steel plant output declined in August due to the influence of restrictions on electricity and other factors, but relatively increased compared with the same period of last year, so blind pessimism is not necessary.
3. For downstream users, the purchasing for end-users did not obviously improved in September, the output for steel plant relatively decreased while the market inventory kept stable, so that the delivery was not quite ideal. Though September is the traditional sales season, yet both of bearing steel market and the whole steel market still operate in weakness.
4. For market, the deal in this month was light, merchants held different opinions for the post market trend. At present, it could not see a strong positive market price to prop up, thus to fell out of the channel, in the meanwhile, the external market economic situation is relatively tight, the price for billet and screw rapidly down which largely impact on the market, furthermore, it also bring certain difficult for price correction.
In summary, bearing steel market is still in the selling off-season. It is estimated that the overall market in this month will still operate in weakness, meanwhile the price will continue to drop.
Picture One: The national bearing steel (material) production situation from January to August from 2008 to 2011
Data Resource: MRI
It is learned from Picture 1 that the output of bearing steel (crude steel) has dropped for two months, however, it has increased compared with the output in 2010, meanwhile the output of crude steel in August 2011 increased 16.2% compared with the same period of last year, while the output in July increased 14.2%.
Table One: The national crude steel production situation in bearing steel manufacturers from January to August in 2011 (Unit: ton)
From Table One, we can saw that the first three for bearing steel output from January to August in 2011 were Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel ), Dongbei Speical Steel and Juneng Steel, the output for Nanjing Steel dropped to the fourth place from the original third place in last month. (Sha Steel just counted the yield of Huai Steel)
Secondly、Bearing Steel Market Performance in September
The price of bearing steel was weak in September, and the overall price slightly decreased, while price in southern regions significantly declined in the prior period. The overall bearing steel market operated in weakness in September with the stable market inventory, meanwhile the deal has picked up compared with the previous month due to the influence of holidays and other factors by the end of this month. The specific condition of bearing steel in the domestic various regions in this month were as follows:
Hangzhou Market: the price in this region slightly improved in September with the common market deal. Up to the end of September, the average transaction price of small size GCr 15 (continuous casting non-annealed steel) was between 5,900 yuan/ton and 6,000 yuan/ton, and the GCr15 die-casting annealed steel was between 7,650 yuan/ton and 7,750 yuan/ton.
Luoyang Market: the price in this region basically kept stable with the common market deal. Up to the end of September, the average transaction price of small size GCr 15 (continuous casting non-annealed steel) was between 6,200 yuan/ton and 6,300 yuan/ton, and the GCr15 die-casting annealed steel was about 7,800 yuan/ton.
Xi'an Market: the price in this region was weak, meanwhile the market deal slightly improved. Up to the end of September, the average transaction price of small size GCr 15 (continuous casting non-annealed steel) was not sufficient, and the GCr15 die-casting annealed steel was between 7,750 yuan/ton and 7,800 yuan/ton.
Picture Two: Average price trend for the domestic bearing steel from 2009 to 2011
Data Resource: MRI
According to the statistics from Mysteeel.com: up to the end of September, the national average price of GCr15 continuous casting non-annealed steel of 50mm was 6,271 yuan/ton; the national average price of GCr15 die-casting annealed steel of 100mm was 7,893 yuan/ton.
Table Two: Sales price summary of bearing steel manufacturers in East China (standard continuous casting non-annealed steel bar ) unit: yuan/ton
From Table Two, the bearing steel price in East China mixed with increasing & decreasing in September, and the overall market was weak. However, there was too much decline pressure for southern regions in the prior period, thus slight rose could not represent that the market has truly out of the decline channel, meanwhile it did not play a promoting role in transaction and delivery.
Thirdly、The price of bearing steel narrowly shocked
1.In the aspect of raw material, the price for high-chrome in September dropped to 8,300 yuan/ton, declined about 200 yuan/ton compared with the price in last month, and it will continue to drop in short term. Besides, the price for iron ore, pig iron, scrap steel and other raw material was also weak, the supporting role for raw material on cost has not existed.
Picutre Three: The chart for the average price of domestic high-carbon ferrochrome from 2010 to 2011
Data Resource: MRI
2. As for steel plant, the first fifth steel plant for its output in August did not make any adjustments for bearing steel price in September, the steel plant output declined in August due to the influence of restrictions on electricity and other factors, but relatively increased compared with the same period of last year, so blind pessimism is not necessary.
3. For downstream users, the purchasing for end-users did not obviously improved in September, the output for steel plant relatively decreased while the market inventory kept stable, so that the delivery was not quite ideal. Though September is the traditional sales season, yet both of bearing steel market and the whole steel market still operate in weakness.
4. For market, the deal in this month was light, merchants held different opinions for the post market trend. At present, it could not see a strong positive market price to prop up, thus to fell out of the channel, in the meanwhile, the external market economic situation is relatively tight, the price for billet and screw rapidly down which largely impact on the market, furthermore, it also bring certain difficult for price correction.
In summary, bearing steel market is still in the selling off-season. It is estimated that the overall market in this month will still operate in weakness, meanwhile the price will continue to drop.
(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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