Bearing steel price will continue the weak consolidation state in January
Resource from: CBCC Likes:213
Jan 23,2014
Overview: In November, the output of crude bearing steel rose 69,400 tons QoQ, and export volume fell 29.55 QoQ. In December, the prices of continuous casting and molded GCr15 bearing steel fell 23 and 33 yuan/ton respectively QoQ. Overall, the bearing steel market continued the weak trend in December.
In mid-December, the average daily production of crude steel was 2,014,300 tons, the stock of key steel mills was 13,820,000 tons. Market funds become tighter in January, and downstream demand remains difficult to improve, so it is expected that the domestic bearing steel market will continue the consolidatio trend.
I. Output of Bearing Steel
From January to November, 2013, the output of crude bearing steel of major steel companies was 2.787 million tons, increased by 3% compared with last year; during the same period, the steel output of major special steel companies was 2,636,400 tons, down 0.57% compared to last year. In November, the monthly output of crude bearing steel was 29.41 million tons, and the monthly output of bearing steel was 23.09 million tons.
Figure 1: Change in Domestic Output of Bearing Steel (crude steel) from 2012 to 2013
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to November in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to November 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 25 companies, the crude bearing steel ouput of 10 companies increased while 14 fell.
I. Performance of Domestic Bearing Steel Market in December:
(i) The export volume of bearing steel from January to November in 2013 slightly fell
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 8,142 tons in November, 2013, down 19.33% on year-on-year basis; the cumulative export volume in the same period was 110,770 tons.
Figure 2: Bearing Steel Export Situation in Major Domestic Special Steel Enterprises from 2012 to 2013
Data Resource: MRI
II. The prices in bearing steel market fellslightly in December
Bearing steel market price fell in the range of 20-30 yuan/ton in December, with poor transactions. The detailed situations of bearing steel markets across the country in December are as follows:
Hangzhou market: the average knock-down price of standard GCr15 continuous casting non-annealed steel was 4350 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was between 7,800 yuan/ton.
Luoyang market: the average knock-down price of standard GCr15 continuous casting non-annealed steel was 4,750 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was 7,800 yuan/ton. Xi'an market: the 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 around 7,500 yuan/ton.
As for Shenyang market, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,150yuan/ton, and the spot goods of GCr15 die-casting annealed steel was insufficient.
Table 2: Summary of Sales Price of Major Bearing Steel Manufacturers in East China (standard continuous casting non-annealed steel bar) Unit: yuan
According to the statistics from Mysteeel.com: up to the end of December, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 4,755 yuan/ton; the average price of GCr15Φ100mm die-casting annealed steel was 7,911 yuan/ton. (some modifications applied to the statistical method)
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
Raw Materials: the average price of high carbon ferrochrome was 7011 yuan/ton in December, down slightly from last month. Raw material price is expected in January will remain stable in a weak trend, and has less support to the bearing steel production cost.
2. Bearing Industry: 1,482,770,000 units of rolling bearings were output in November, with an increase of 0.07%. From January to November, 14,783,850,000 units of rolling bearings were output, with an increase of 1.69%.
3. China's steel industry PMI index in downturn: China's steel industry PMI index in December was 47.7 percent, falling below 50% for the fourth consecutive month, and arriving at the lowest level in six months. Wherein, new orders index was 45.6%, down 2.9 percent compared with last month, and in the below 50% contraction range for four consecutive months.
4. Funds: considering the deleveraging of financial institutions and the tight monetary policy of central bank maintain risks, whether "money shortage" could struck the market in 2014 is still of great uncertainty.
5. Market Mentality: as the Spring Festival is approaching, merchants' willingness for stability is strong. To avoid significant price fall occur after the festival, traders show less enthusiasm for raising price.
To sum up: the support of raw materials price is weak; tight funding situation is hard to change; market confidence is weak. Bearing steel market is expected to remain in weak consolidation trend in January.
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to November in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to November 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 25 companies, the crude bearing steel ouput of 10 companies increased while 14 fell.
I. Performance of Domestic Bearing Steel Market in December:
(i) The export volume of bearing steel from January to November in 2013 slightly fell
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 8,142 tons in November, 2013, down 19.33% on year-on-year basis; the cumulative export volume in the same period was 110,770 tons.
Figure 2: Bearing Steel Export Situation in Major Domestic Special Steel Enterprises from 2012 to 2013
Data Resource: MRI
II. The prices in bearing steel market fellslightly in December
Bearing steel market price fell in the range of 20-30 yuan/ton in December, with poor transactions. The detailed situations of bearing steel markets across the country in December are as follows:
Hangzhou market: the average knock-down price of standard GCr15 continuous casting non-annealed steel was 4350 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was between 7,800 yuan/ton.
Luoyang market: the average knock-down price of standard GCr15 continuous casting non-annealed steel was 4,750 yuan/ton, and the average knock-down price of GCr15 die-casting annealed steel was 7,800 yuan/ton. Xi'an market: the 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 around 7,500 yuan/ton.
As for Shenyang market, the average knock-down price of standard GCr15 continuous casting non-annealed steel was from 4,150yuan/ton, and the spot goods of GCr15 die-casting annealed steel was insufficient.
Table 2: Summary of Sales Price of Major Bearing Steel Manufacturers in East China (standard continuous casting non-annealed steel bar) Unit: yuan
According to the statistics from Mysteeel.com: up to the end of December, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 4,755 yuan/ton; the average price of GCr15Φ100mm die-casting annealed steel was 7,911 yuan/ton. (some modifications applied to the statistical method)
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
Raw Materials: the average price of high carbon ferrochrome was 7011 yuan/ton in December, down slightly from last month. Raw material price is expected in January will remain stable in a weak trend, and has less support to the bearing steel production cost.
2. Bearing Industry: 1,482,770,000 units of rolling bearings were output in November, with an increase of 0.07%. From January to November, 14,783,850,000 units of rolling bearings were output, with an increase of 1.69%.
3. China's steel industry PMI index in downturn: China's steel industry PMI index in December was 47.7 percent, falling below 50% for the fourth consecutive month, and arriving at the lowest level in six months. Wherein, new orders index was 45.6%, down 2.9 percent compared with last month, and in the below 50% contraction range for four consecutive months.
4. Funds: considering the deleveraging of financial institutions and the tight monetary policy of central bank maintain risks, whether "money shortage" could struck the market in 2014 is still of great uncertainty.
5. Market Mentality: as the Spring Festival is approaching, merchants' willingness for stability is strong. To avoid significant price fall occur after the festival, traders show less enthusiasm for raising price.
To sum up: the support of raw materials price is weak; tight funding situation is hard to change; market confidence is weak. Bearing steel market is expected to remain in weak consolidation trend in January.
(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.
