Bearing steel market is to go up in consolidation in September
Resource from: CBCC Likes:170
Sep 22,2013
Overview: Looking back to domestic bearing steel market in August, the price of GCr15Φ50mm continuous casting non-annealed steel rose slightly, and the market were thinly traded. Up to the end of August, the average price of GCr15Φ50mm continuous casting non-annealed steel around China was 4,842 yuan/ton, 14 yuan increased 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 Auguest, steel market showed slight improvement in performance, and quoted price slowly went up as steel mills raises the ex-factory price. But traders still had no improvement in shipment, which resulted in weak market confidence, and the operation rate of downstream enterprises remained at low level due to the high-temperature, brownouts and other factors.
Currently, steel output stays in high level, and steel mills are eager to further raisedthe price. Bearing steel market is expected to operate in shock consolidation in September, and the market price trend worths our attention.
I. Domestic Output Situation of Bearing Steel
From January to July in 2013, the domestic output of crude steel by major quality special steel producers was about 1.681 million ton, 9.1 % down compared with the same period last year; the bearing steel output of major quality special steel producers was 1.651 million ton, 9.5 % down compared with the same period last year. Wherein, for single month July, the output of bearing crude steel was 0.248 million ton, and that of bearing steel was 0.240 million ton.
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 June in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to May in 2013 are still Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel. (for Sha Steel, only the yield of Huai Steel is counted; some modifications are made to the statistical method for calculating Baosteel's output). Among these 22 companies, the crude bearing steel ouput of 11 companies increased while 11 fell, but the output fell as a whole.
I. Performance of Domestic Bearing Steel Market in August:
(i) The export volume of bearing steel from January to July in 2013 slightly fell
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 11,210 tons in July, 2013, rose by 34.11 % on year-on-year basis; the cumulative export volume in the same period was 78,602 tons.
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 increased in August
Bearing steel market price slightly increased in August, transactions remained poor, and trader confidence improved. The detailed situations of bearing steel markets across the country in August are as follows:
The bearing steel price in Hangzhou market slightly increased, and transactions improved. Up to the end of August, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4350 to 4600 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was between 7,600 and 8,000 yuan/ton.
The bearing steel price in Luoyang market fell slightly and the deal was normal. Up to the end of August, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,550 to 4,700 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 slightly fell and the deal was normal. Up to the end of August, 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 fell sharply, and the deal was poor. Up to the end of August, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4350 to 4400 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 August 2013, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 4,842 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 prices in East China rose marginally in August, mainly in the range of 30-50 yuan/ton.
Market turnover was lightly improved, and the operation rate of downstream enterprises remained at low level due to the high-temperature, brownouts and other factors. Steel mills made some adjustments in ex-factory price, and performed much better in orders, while traders remained poor in shipment, feeling slightly pessimistic to the market outlook.
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
1. Raw materials
The price of high chromium was stable in August, and the quoted price was around 7100 yuan/ton at the end of August, flat from the preceding month. The prices of iron ore, scrap steel, ferroalloy and other raw materials rose fast while the cost of steel production increased significantly, so most of the manufacturers were low in profits or near negative profit.
2. Steel Mills
This year, the overall steel output declined. From January to July in 2013 , the crude bearing steel output of China major special steel enterprises was 1.681 million tons, dropped by 9.1%on year-on-year basis. According to statistics, 8 of the 17 major special steel enterprises raised the ex-factory price, 1 cut the price, and the other 8 remained unchanged. There was small improvement in orders, which improved the confident of steel mills in the market outlook.
3. Markets
The contradiction that steel mills bullish were in mood while traders in bearish mood remained in August. In face of the high cost driven by the price rose in iron ore, coking coal and other raw materials, steel mills had to rely on upward adjustment in price to maintain the meager profits. But traders still had no improvement in shipment due to the high-temperature, brownouts and other factors, which resulted in weak market confidence. However, the overall economy shows signs of recovery, which help stabilized the mentality of traders, and the market pessimism gradually dispersed.
4. Downstream markets
According to the data released by China Federation of Logistics and Purchasing and Services Industry Research Center under National Bureau of Statistics, China Manufacturing Purchasing Managers Index (PMI) in July 2013 was 50.3%, increased by 0.2 percentage points compared with last month. From multiple sub-index, and compared with the previous month, major indices all rebounded to varying degrees except that the delivery time of finished goods inventory and supplier shortened. As can be seen from the above data, the machinery industry continued weak recovery trend in July, the overall industry performance was still tepid.
5. Market outlook
In August, bearing steel market has showed the sign of recovery, and the market is expected to continued the trend of consolidation in September with possibility of rising driven by the stable trend in steel market.
Data Resource: Special Steel Association
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to June in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to May in 2013 are still Zhongxin Special Steel (Xinye Steel and Xingcheng Special Steel), Dongbei Speical Steel and Juneng Steel. (for Sha Steel, only the yield of Huai Steel is counted; some modifications are made to the statistical method for calculating Baosteel's output). Among these 22 companies, the crude bearing steel ouput of 11 companies increased while 11 fell, but the output fell as a whole.
I. Performance of Domestic Bearing Steel Market in August:
(i) The export volume of bearing steel from January to July in 2013 slightly fell
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 11,210 tons in July, 2013, rose by 34.11 % on year-on-year basis; the cumulative export volume in the same period was 78,602 tons.
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 increased in August
Bearing steel market price slightly increased in August, transactions remained poor, and trader confidence improved. The detailed situations of bearing steel markets across the country in August are as follows:
The bearing steel price in Hangzhou market slightly increased, and transactions improved. Up to the end of August, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4350 to 4600 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was between 7,600 and 8,000 yuan/ton.
The bearing steel price in Luoyang market fell slightly and the deal was normal. Up to the end of August, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,550 to 4,700 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 slightly fell and the deal was normal. Up to the end of August, 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 fell sharply, and the deal was poor. Up to the end of August, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4350 to 4400 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 August 2013, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 4,842 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 prices in East China rose marginally in August, mainly in the range of 30-50 yuan/ton.
Market turnover was lightly improved, and the operation rate of downstream enterprises remained at low level due to the high-temperature, brownouts and other factors. Steel mills made some adjustments in ex-factory price, and performed much better in orders, while traders remained poor in shipment, feeling slightly pessimistic to the market outlook.
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
1. Raw materials
The price of high chromium was stable in August, and the quoted price was around 7100 yuan/ton at the end of August, flat from the preceding month. The prices of iron ore, scrap steel, ferroalloy and other raw materials rose fast while the cost of steel production increased significantly, so most of the manufacturers were low in profits or near negative profit.
2. Steel Mills
This year, the overall steel output declined. From January to July in 2013 , the crude bearing steel output of China major special steel enterprises was 1.681 million tons, dropped by 9.1%on year-on-year basis. According to statistics, 8 of the 17 major special steel enterprises raised the ex-factory price, 1 cut the price, and the other 8 remained unchanged. There was small improvement in orders, which improved the confident of steel mills in the market outlook.
3. Markets
The contradiction that steel mills bullish were in mood while traders in bearish mood remained in August. In face of the high cost driven by the price rose in iron ore, coking coal and other raw materials, steel mills had to rely on upward adjustment in price to maintain the meager profits. But traders still had no improvement in shipment due to the high-temperature, brownouts and other factors, which resulted in weak market confidence. However, the overall economy shows signs of recovery, which help stabilized the mentality of traders, and the market pessimism gradually dispersed.
4. Downstream markets
According to the data released by China Federation of Logistics and Purchasing and Services Industry Research Center under National Bureau of Statistics, China Manufacturing Purchasing Managers Index (PMI) in July 2013 was 50.3%, increased by 0.2 percentage points compared with last month. From multiple sub-index, and compared with the previous month, major indices all rebounded to varying degrees except that the delivery time of finished goods inventory and supplier shortened. As can be seen from the above data, the machinery industry continued weak recovery trend in July, the overall industry performance was still tepid.
5. Market outlook
In August, bearing steel market has showed the sign of recovery, and the market is expected to continued the trend of consolidation in September with possibility of rising driven by the stable trend in steel market.
(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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