Bearing Steel Market to be Fluctuated in Upward Trend in May
Resource from: CBCC Likes:3366
May 07,2012
Looking back of the domestic bearing steel market in April, the price of GCr15Φ50mm continuous casting non-annealed steel was slightly increased, but the deal was light. Up to the end of April, the average price of GCr15Φ50mm continuous casting non-annealed steel around China was 5,764 yuan/ton, 64 yuan higher per ton compared with the price at the end of previous month; the average price of GCr15Φ100mm continuous casting annealed steel was 8100 yuan/ton, 7 yuan higher per ton compared with the price at the end of previous month (some modifications applied to the statistical method). After the consolidation in March and the first half of April, the price rebounded in the bearing steel market, steel mills received significantly more orders, the amount of ttle spot goods sent to the market became stabilized, and the overall market inventory gradually returned to a higher level. Traders generally held enough confidence in the market outlook, even the pessimists believed in less downside potential. However, the overall economic situation in this year is poor, and the steel market remains stagnant due to the sluggish performance. So hopes are given to the arising of new motive power to energize the market driven by the economic rebound in the second quarter after the economy bottomed out in the first quarter. The bearing steel market is expected to fluctuated in upward trend in May, with some room for price rising in May.
I. Domestic Output Situation of Bearing Steel
From January to March in 2012, the domestic output of crude steel by major quality special steel producers was about 756,000 tons, 14.0% declined compared with the same period last year; the output of bearing steel of major quality special steel producers was 709,000 tons, 12.2% declined compared with the same period last year. Only in March, the domestic output of crude steel and bearing steel was respectively 263,000 tons and 256,000 tons.
Figure 1: Change in Domestic Output of Bearing Steel (crude steel) from 2011 to 2012
Data Resource: Special Steel Association
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to March in 2012 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to March in 2012 are still Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel, and the rankings of other steel mills do not change much (for Sha Steel, only the yield of Huai Steel counted). Zhongxin Special Steel that ranks the first have posed relatively large impact on the slowdown of production in bearing industry.
II. Performance of Domestic Bearing Steel Market in Aprl:
(i) The export volume of bearing steel from January to March in 2012 continued to fall
According to the statistical data released by the ten major domestic bearing steel manufacturers, the export volume of bearing steel in March was 7,329 tons, which indicates great drop compared with 12,189 tons in the same period of last year.
Figure 2: Bearing Steel Export Situation in Major Domestic Special Steel Enterprises from 2011 to 2012
Data Resource: MRI
(ii) The prices in bearing steel market rose slightly in April
The prices in bearing steel market rose slightly in April, and the deal as a whole was relatively light. Market traders showed better mentality, and steel mills received more orders, with the output getting back on track in a trend of gradual increase, thus may probablely result in much higher pressure to the spot market compared with the previous few months. The detailed situations of bearing steel market across the country in April are as follows:
Bearing steel prices in Hangzhou market slighly increased and the performance of transactions was improved. Up to the end of April, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 5,350 to 5,450 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was from 7,600 yuan/ton to 7,700 yuan/ton.
Bearing steel prices in Luoyang market kept stable and the deal was light. Up to the end of April, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 5,600 to 5,750 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was form 7,600 to 7,700 yuan/ton.
Bearing steel prices in Xi'an market were temporarily stable and the deal was commom. Up to the end of April, the spot goods of standard GCr15 continuous casting non-annealed steel was insufficient, and the average knock-down price of GCr15 die-casting annealed steel was from 7,700 to 7,800 yuan/ton.
As for Chongqing and Chengdu, the prices rose significantly, and the turnover became better. Up to the end of April, the spot goods of standard GCr15 continuous casting non-annealed steel was from 5950 to 6100 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was around 7,600 yuan/ton.
Figure 3: Average Price Trend of Domestic Bearing Steel from 2011 to 2012
Data Resource: Mysteel
According to the statistics from Mysteeel.com: up to the end of April, 2012, the average price of GCr15 Φ50mm continuous casting non-annealed steel in China was 5,764 yuan/ton; the average price of GCr15 Φ100mm die-casting annealed steel was 8,100 yuan/ton. (some modifications applied to the statistical method)
Table 2: Summary of Sales Price of Major Bearing Steel Manufacturers in East China (standard continuous casting non-annealed steel bar) Unit: yuan
Seen from Table 2 that the bearing steel prices in East China market slightly rose in April, and the amount of goods arrived at steel mills was sufficient. Although the market mentality was improved, the inventory level was getting higher without the transaction reaching the ideal level, and traders mainly held the prudent attitude with the rising speed of prices being very slow.
III. Domestic Bearing Steel Market will Slightly Increase:
1. Raw materials
The high-chrome prices dropped in April, and the quoted price was around 7750 yuan/ton, with a decrease of 100 yuan/ton compared with last month.
Figure 4: Average Price Trend of Domestic High Carbon Ferrochrome from 2011 to 2012
Data Resource: Mysteel
2. Steel Mills
There was still a double-digit contraction amplitude on the aspect of production volume in steel mills from January to March compared with the same period last year, wherein CITIC Special Steel had a great impact on the decline in production of bearing steel industry. During the recent economic slowdown period, reduced production is in fact not a bad thing, what really worries us shall be the production recovery in the coming few months.
3. Steel Market
The increase scope was not big in April but the market confidence was improved. As for the price trend, short pulse rise is expected, but it is difficult to returned to the trend of rising. Current steel prices are not high in the overall level, and the room for price fall is limited, the same with the room for price rise as the rising power is inadequate for now. Steel mills are now rarely purchasing iron ores in advance, so the ore price is difficult to experience ups and downs, resulting in a substantial impact on the market.
4. Market Outlook
The economic indicators in the second quarter will affect the recovery of steel market to a certain degree, but the fundamentals of the steel industry is difficult to change for a time as the effect may not be so significant. After all, the performance of the steel market this year is really not satisfactory compared with the same period last year. During the period of rapid economic growth, the unevenness between supply and demand caused by capacity expansion failed to be effectively reflected, so the supply was still expected to 7.5%, however, the demand did not catch up with the pace of supply. It is expected that the bearing steel market is difficult to be greatly improved, but the prices is to slightly rise next month, and the amount of goods arrived at the market is to gradually increase, resulting in a certain pressure on the spot market.
Figure 1: Change in Domestic Output of Bearing Steel (crude steel) from 2011 to 2012
Data Resource: Special Steel Association
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to March in 2012 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to March in 2012 are still Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel, and the rankings of other steel mills do not change much (for Sha Steel, only the yield of Huai Steel counted). Zhongxin Special Steel that ranks the first have posed relatively large impact on the slowdown of production in bearing industry.
II. Performance of Domestic Bearing Steel Market in Aprl:
(i) The export volume of bearing steel from January to March in 2012 continued to fall
According to the statistical data released by the ten major domestic bearing steel manufacturers, the export volume of bearing steel in March was 7,329 tons, which indicates great drop compared with 12,189 tons in the same period of last year.
Figure 2: Bearing Steel Export Situation in Major Domestic Special Steel Enterprises from 2011 to 2012
Data Resource: MRI
(ii) The prices in bearing steel market rose slightly in April
The prices in bearing steel market rose slightly in April, and the deal as a whole was relatively light. Market traders showed better mentality, and steel mills received more orders, with the output getting back on track in a trend of gradual increase, thus may probablely result in much higher pressure to the spot market compared with the previous few months. The detailed situations of bearing steel market across the country in April are as follows:
Bearing steel prices in Hangzhou market slighly increased and the performance of transactions was improved. Up to the end of April, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 5,350 to 5,450 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was from 7,600 yuan/ton to 7,700 yuan/ton.
Bearing steel prices in Luoyang market kept stable and the deal was light. Up to the end of April, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 5,600 to 5,750 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was form 7,600 to 7,700 yuan/ton.
Bearing steel prices in Xi'an market were temporarily stable and the deal was commom. Up to the end of April, the spot goods of standard GCr15 continuous casting non-annealed steel was insufficient, and the average knock-down price of GCr15 die-casting annealed steel was from 7,700 to 7,800 yuan/ton.
As for Chongqing and Chengdu, the prices rose significantly, and the turnover became better. Up to the end of April, the spot goods of standard GCr15 continuous casting non-annealed steel was from 5950 to 6100 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was around 7,600 yuan/ton.
Figure 3: Average Price Trend of Domestic Bearing Steel from 2011 to 2012
Data Resource: Mysteel
According to the statistics from Mysteeel.com: up to the end of April, 2012, the average price of GCr15 Φ50mm continuous casting non-annealed steel in China was 5,764 yuan/ton; the average price of GCr15 Φ100mm die-casting annealed steel was 8,100 yuan/ton. (some modifications applied to the statistical method)
Table 2: Summary of Sales Price of Major Bearing Steel Manufacturers in East China (standard continuous casting non-annealed steel bar) Unit: yuan
Seen from Table 2 that the bearing steel prices in East China market slightly rose in April, and the amount of goods arrived at steel mills was sufficient. Although the market mentality was improved, the inventory level was getting higher without the transaction reaching the ideal level, and traders mainly held the prudent attitude with the rising speed of prices being very slow.
III. Domestic Bearing Steel Market will Slightly Increase:
1. Raw materials
The high-chrome prices dropped in April, and the quoted price was around 7750 yuan/ton, with a decrease of 100 yuan/ton compared with last month.
Figure 4: Average Price Trend of Domestic High Carbon Ferrochrome from 2011 to 2012
Data Resource: Mysteel
2. Steel Mills
There was still a double-digit contraction amplitude on the aspect of production volume in steel mills from January to March compared with the same period last year, wherein CITIC Special Steel had a great impact on the decline in production of bearing steel industry. During the recent economic slowdown period, reduced production is in fact not a bad thing, what really worries us shall be the production recovery in the coming few months.
3. Steel Market
The increase scope was not big in April but the market confidence was improved. As for the price trend, short pulse rise is expected, but it is difficult to returned to the trend of rising. Current steel prices are not high in the overall level, and the room for price fall is limited, the same with the room for price rise as the rising power is inadequate for now. Steel mills are now rarely purchasing iron ores in advance, so the ore price is difficult to experience ups and downs, resulting in a substantial impact on the market.
4. Market Outlook
The economic indicators in the second quarter will affect the recovery of steel market to a certain degree, but the fundamentals of the steel industry is difficult to change for a time as the effect may not be so significant. After all, the performance of the steel market this year is really not satisfactory compared with the same period last year. During the period of rapid economic growth, the unevenness between supply and demand caused by capacity expansion failed to be effectively reflected, so the supply was still expected to 7.5%, however, the demand did not catch up with the pace of supply. It is expected that the bearing steel market is difficult to be greatly improved, but the prices is to slightly rise next month, and the amount of goods arrived at the market is to gradually increase, resulting in a certain pressure on the spot market.
(CBCC)
【CBCC News Statement】
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.
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.
Previous Zero-Max Load Adaptors Connect Pump Impellers in Underwater Applications
Next Aug 17 Bearing Steel Price in Different Regions of China
Next Aug 17 Bearing Steel Price in Different Regions of China
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
