The bearing steel market is to operated in weak consolidation in May
Resource from: CBCC Likes:211
Jun 03,2013
Overview: Looking back to the domestic bearing steel markets in April, the price of GCr15Φ50mm continuous casting non-annealed steel slightly dropped, and the markets were thinly traded. Up to the end of April, the average price of GCr15Φ50mm continuous casting non-annealed steel around China was 5,107 yuan/ton, 8 yuan down 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 April, the overall performance in bearing steel market was flat, the quoted price from traders showed narrow range of fluctuations, and individual mills made slightly cut their ex-factory price; the price of bulk commodities fluctuated dramatically, gold took the lead of price fall among other precious metal, and the overall economic situation was slightly grim. The bearing steel market is expected to operate in weak consolidation in May, and the price is difficult to rise.
I. Domestic Output Situation of Bearing Steel
From January to March in 2013, the domestic output of crude steel by major quality special steel producers was about 0.744 million ton, 3.9 % down compared with the same period last year; the output of bearing steel of major quality special steel producers was 0.724 million tons, 2.2 % down compared with the same period last year.
Figure 1: Change in Domestic Output of Bearing Steel (crude steel) from 2012 to 2013
Data Resource: Special Steel Association
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to March in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to March in 2013 are still Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel, and some steel mills have just put into operation in March or only on the way (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:
(i) The export volume of bearing steel from January to March in 2013 slightly fell
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 15,941 tons in March, 2013, rose by 117.51% on year-on-year basis. Although the exports growth in March was relatively rapid, but the cumulative export volume from January to March was only 34,469 tons, much less compared with 19,183 tons in the same period of 2012.
Figure 2: Bearing Steel Export Situation in Major Domestic Special Steel Enterprises from 2012 to 2013
Data Resource: MRI
The prices in bearing steel market slightly fell in April, and transactions turned out to be no good, which resulted in some decline in the market confidence. The detailed situations of bearing steel markets across the country in April are as follows:
The bearing steel price in Hangzhou market slightly fell, and the market transactions were normal. Up to the end of April, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,700 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 flat and the deal was normal. Up to the end of April, 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 7,500 to 7,800 yuan/ton.
The bearing steel price in Xi'an market remained stable and the deal was normal. Up to the end of April, 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 was also stable, and the deal was relatively good. Up to the end of April, 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.
Figure 3: Average Price Trend of Domestic Bearing Steel from 2012 to 2013
Data Resource: Mysteel
According to the statistics from Mysteeel.com: up to the end of April, 2013, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 5,107 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: Summary of Sales Price of Major Bearing Steel Manufacturers in East China (standard continuous casting non-annealed steel bar) Unit: yuan
Table 2 shows that the bearing steel price in East China slightly fell in April, mainly in the range of 50 yuan/ton. The market performance was poor recently, and market participants felt pessimistic to the market outlook due to the high steel production, sluggish sales, weak downstream demand and oversupply.
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
1. Raw materials
The price of high chromium fell sharply in April, and the quoted price was around 7100 yuan/ton at the end of the month, 200 yuan/ton decreased compared with last month.
Figure 4: Average Price Trend of Domestic High Carbon Ferrochrome from 2012 to 2013
Data Resource: Mysteel
2. Steel Mills
The high jump in profits of steel industry was, on one hand, due to the low base number last year, on the other hand, due to the rose in steel price at the beginning of this year and the wider range of price drop of raw materials. The crude steel production nationwide totaled 191.89 million tons from January to March, increase by 9.1% on year-on-year basis. The production of pig iron and steel was respectively 178,226,000 tons and 245,505,000 tons, increased by 7.6% and 12.3% on year-on-year basis; the total export volume of steel was 14.43 million tons, increased by 18.8% on year-on-year basis.
3. Steel Market
Daily consumption of electric power plants slightly increased, and the demand for electricity coal is expected not to increase significantly in May due to the hydropower supplement. Market prices dipped while traders started to maintain low inventory as there were less orders, but markets were still under pressure on the stock.
4. Downstream Market
The profits of industrial enterprises above designated size in Q1 were higher compared with the same period of last year, while 4.7 percentage points down if only counting the previous two months, indicating poor operating status of these enterprises. In the first quarter, the sales volume of excavators, loaders, cranes, bulldozers and road rollers sales respectively decreased by 25.6%, 19%, 32.4%, 16% and 6.8%, indicating a narrowed drop range YoY; the production and sales of automobiles increased above 10%, better than expected.
The bearing steel market is expected to operate in weak consolidation in May, and the price is likely to fell slightly.
Figure 1: Change in Domestic Output of Bearing Steel (crude steel) from 2012 to 2013
Data Resource: Special Steel Association
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to March in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to March in 2013 are still Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel, and some steel mills have just put into operation in March or only on the way (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:
(i) The export volume of bearing steel from January to March in 2013 slightly fell
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 15,941 tons in March, 2013, rose by 117.51% on year-on-year basis. Although the exports growth in March was relatively rapid, but the cumulative export volume from January to March was only 34,469 tons, much less compared with 19,183 tons in the same period of 2012.
Figure 2: Bearing Steel Export Situation in Major Domestic Special Steel Enterprises from 2012 to 2013
Data Resource: MRI
The prices in bearing steel market slightly fell in April, and transactions turned out to be no good, which resulted in some decline in the market confidence. The detailed situations of bearing steel markets across the country in April are as follows:
The bearing steel price in Hangzhou market slightly fell, and the market transactions were normal. Up to the end of April, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,700 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 flat and the deal was normal. Up to the end of April, 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 7,500 to 7,800 yuan/ton.
The bearing steel price in Xi'an market remained stable and the deal was normal. Up to the end of April, 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 was also stable, and the deal was relatively good. Up to the end of April, 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.
Figure 3: Average Price Trend of Domestic Bearing Steel from 2012 to 2013
Data Resource: Mysteel
According to the statistics from Mysteeel.com: up to the end of April, 2013, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 5,107 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: Summary of Sales Price of Major Bearing Steel Manufacturers in East China (standard continuous casting non-annealed steel bar) Unit: yuan
Table 2 shows that the bearing steel price in East China slightly fell in April, mainly in the range of 50 yuan/ton. The market performance was poor recently, and market participants felt pessimistic to the market outlook due to the high steel production, sluggish sales, weak downstream demand and oversupply.
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
1. Raw materials
The price of high chromium fell sharply in April, and the quoted price was around 7100 yuan/ton at the end of the month, 200 yuan/ton decreased compared with last month.
Figure 4: Average Price Trend of Domestic High Carbon Ferrochrome from 2012 to 2013
Data Resource: Mysteel
2. Steel Mills
The high jump in profits of steel industry was, on one hand, due to the low base number last year, on the other hand, due to the rose in steel price at the beginning of this year and the wider range of price drop of raw materials. The crude steel production nationwide totaled 191.89 million tons from January to March, increase by 9.1% on year-on-year basis. The production of pig iron and steel was respectively 178,226,000 tons and 245,505,000 tons, increased by 7.6% and 12.3% on year-on-year basis; the total export volume of steel was 14.43 million tons, increased by 18.8% on year-on-year basis.
3. Steel Market
Daily consumption of electric power plants slightly increased, and the demand for electricity coal is expected not to increase significantly in May due to the hydropower supplement. Market prices dipped while traders started to maintain low inventory as there were less orders, but markets were still under pressure on the stock.
4. Downstream Market
The profits of industrial enterprises above designated size in Q1 were higher compared with the same period of last year, while 4.7 percentage points down if only counting the previous two months, indicating poor operating status of these enterprises. In the first quarter, the sales volume of excavators, loaders, cranes, bulldozers and road rollers sales respectively decreased by 25.6%, 19%, 32.4%, 16% and 6.8%, indicating a narrowed drop range YoY; the production and sales of automobiles increased above 10%, better than expected.
The bearing steel market is expected to operate in weak consolidation in May, and the price is likely to fell slightly.
(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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