The bearing steel market is to stabilize in April
Resource from: CBCC Likes:218
Apr 25,2013
Overview: Looking back to the domestic bearing steel market in January, the price of GCr15Φ50mm continuous casting non-annealed steel slightly increased, and the turnover was acceptable. Up to the end of March, the average price of GCr15Φ50mm continuous casting non-annealed steel around China was 5,115 yuan/ton, 28 yuan up per ton compared with the price at the end of previous month; the average price of GCr15Φ100mm continuous casting annealed steel was 8068 yuan/ton. In March, the overall steel market was sluggish, and many steel mills cut prices sharply. Affected by the weak trend in steel market, the price in bearing steel market was also weak, the same with the downstream demand. Current steel production capability was high, and there was imbalance between market supply and demand, thus posed great pressure on traders. The bearing steel market is difficult to pick up in April and run in the consolidation state as a whole.
I. Domestic Output Situation of Bearing Steel
From January to February in 2013, the domestic output of crude steel by major quality special steel producers was about 0.498 million ton, 2.4 % down compared with the same period last year; the output of bearing steel of major quality special steel producers was 0.484 million tons, 6.9 % down compared with the same period last year.
Seen from Table 1 that the top three for bearing steel output from January to February in 2013 are Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel, and some steel mills have not arranged production yet (for Sha Steel, only the yield of Huai Steel is counted; some modifications are made to the statistical method for calculating Baosteel's output).
II. Performance of Domestic Bearing Steel Market in March:
The bearing steel market in March slightly pulled up, but the performance was still not satisfactory. Price rose in the first half of August, but remained stable in the second half as many steel mills cut the price, which obviously affected the market confidence. The detailed situations of bearing steel market across the country in January are as follows:
The bearing steel price in Hangzhou market was flat, and the market transactions were normal. Up to the end of March, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,750 to 5,000 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was between 7,600 and 7,800 yuan/ton.
The bearing steel price in Luoyang market was also flat and the deal was normal. Up to the end of March, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,750 to 5,000 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was from 7,600 to 7,800 yuan/ton.
The bearing steel price in Xi'an market also slightly increased and the deal was normal. Up to the end of March, the spot goods of standard GCr15 continuous casting non-annealed steel was relatively insufficient, and the average knock-down price of GCr15 die-casting annealed steel was around 7,700 yuan/ton.
As for Shenyang market, the prices rose, and the deal was relatively good. Up to the end of March, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4800 to 4900 yuan/ton, and the spot goods of GCr15 die-casting annealed steel was insufficient.
According to the statistics from Mysteeel.com: up to the end of March, 2013, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 5,115 yuan/ton; the average price of GCr15Φ100mm die-casting annealed steel was 8,068 yuan/ton. (some modifications applied to the statistical method)
Table 2 shows that the bearing steel price in East China slightly fell in March, mainly in the range of 50 yuan/ton. This is mainly due to the early fast rising in price, which caused weak sales in later period. The current market demand was weak with supply exceeding demand, so there was no enough support for price to further rise.
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
1. Raw materials
The price of high chromium fell sharply in March, and the quoted price was around 7300 yuan/ton at the end of the month, 400 yuan/ton decreased compared with last month.
2. Steel Mills
According to the data provided by China Steel Association, the steel stock of key steel enterprises was 12.845 million tons in mid-March, up 1.5 % QoQ and 19.2% YoY. Individual steel mills cut the bearing steel price substantially, and yielded high, which caused oversupply in market, and failed to improve the current market situation.
3. Steel Market
Market demand was gradually picking up, and the National Social inventory fell for the first time after the Spring Festival, which indicates the improvement in relationship between market supply and demand. However, the pace of demand improvement could not keep up with the growth of steel production, so the pressure on the stock market remained.
4. Downstream Market
Domestic auto production and sales was respectively 331.17 and 3.3891 million units in January-February, with an increase of 14.1% and 14.7%; appliances retail sales increased by 16.7% 7.5 percentage points up compared with December 2012; machinery/excavator sales was 11328 units, down 47% YoY.
5. Market Outlook
The price in spot steel market prices is expected to stabilize in April if there are improvements in macro-economy and balance between supply and demand, but the rising conditions are not mature enough. Steel mills yields high, which poses huge pressure on the spot market. Although the downstream demand is on the rise, it is still far from the business expectations.
Based on the current trend, stability will be the main tone of the April market, and the price is not likely to change.
Seen from Table 1 that the top three for bearing steel output from January to February in 2013 are Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel, and some steel mills have not arranged production yet (for Sha Steel, only the yield of Huai Steel is counted; some modifications are made to the statistical method for calculating Baosteel's output).
II. Performance of Domestic Bearing Steel Market in March:
The bearing steel market in March slightly pulled up, but the performance was still not satisfactory. Price rose in the first half of August, but remained stable in the second half as many steel mills cut the price, which obviously affected the market confidence. The detailed situations of bearing steel market across the country in January are as follows:
The bearing steel price in Hangzhou market was flat, and the market transactions were normal. Up to the end of March, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,750 to 5,000 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was between 7,600 and 7,800 yuan/ton.
The bearing steel price in Luoyang market was also flat and the deal was normal. Up to the end of March, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,750 to 5,000 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was from 7,600 to 7,800 yuan/ton.
The bearing steel price in Xi'an market also slightly increased and the deal was normal. Up to the end of March, the spot goods of standard GCr15 continuous casting non-annealed steel was relatively insufficient, and the average knock-down price of GCr15 die-casting annealed steel was around 7,700 yuan/ton.
As for Shenyang market, the prices rose, and the deal was relatively good. Up to the end of March, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4800 to 4900 yuan/ton, and the spot goods of GCr15 die-casting annealed steel was insufficient.
According to the statistics from Mysteeel.com: up to the end of March, 2013, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 5,115 yuan/ton; the average price of GCr15Φ100mm die-casting annealed steel was 8,068 yuan/ton. (some modifications applied to the statistical method)
Table 2 shows that the bearing steel price in East China slightly fell in March, mainly in the range of 50 yuan/ton. This is mainly due to the early fast rising in price, which caused weak sales in later period. The current market demand was weak with supply exceeding demand, so there was no enough support for price to further rise.
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
1. Raw materials
The price of high chromium fell sharply in March, and the quoted price was around 7300 yuan/ton at the end of the month, 400 yuan/ton decreased compared with last month.
2. Steel Mills
According to the data provided by China Steel Association, the steel stock of key steel enterprises was 12.845 million tons in mid-March, up 1.5 % QoQ and 19.2% YoY. Individual steel mills cut the bearing steel price substantially, and yielded high, which caused oversupply in market, and failed to improve the current market situation.
3. Steel Market
Market demand was gradually picking up, and the National Social inventory fell for the first time after the Spring Festival, which indicates the improvement in relationship between market supply and demand. However, the pace of demand improvement could not keep up with the growth of steel production, so the pressure on the stock market remained.
4. Downstream Market
Domestic auto production and sales was respectively 331.17 and 3.3891 million units in January-February, with an increase of 14.1% and 14.7%; appliances retail sales increased by 16.7% 7.5 percentage points up compared with December 2012; machinery/excavator sales was 11328 units, down 47% YoY.
5. Market Outlook
The price in spot steel market prices is expected to stabilize in April if there are improvements in macro-economy and balance between supply and demand, but the rising conditions are not mature enough. Steel mills yields high, which poses huge pressure on the spot market. Although the downstream demand is on the rise, it is still far from the business expectations.
Based on the current trend, stability will be the main tone of the April market, and the price is not likely to change.
(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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