Bearing steel market will run in consolidation state in February
Resource from: CBCC Likes:175
Feb 25,2014
Overview: In December, the output of crude bearing steel fell 44,300 tons QoQ while the same of bearing steel rose 339 tons, and the export volume rose QoQ, 28.27%. In January, the prices of continuous casting and molded GCr15 bearing steel fell 37 and 110 yuan/ton respectively QoQ. Overall, the bearing steel market continued the weak trend in January.
In early January, the output of crude steel production increased again, and for key steel enterprises, the average daily out of crude steel was 1.675 million tons, increase by 2.2% QoQ; the stock of key enterprises in mid-January was 12.14 million tons, down 5.7% compared with the beginning of the month. As there is the Spring Festival and Lantern Festival in February, it is expected to have no large scale deal before the Lantern Festival. However, traders all expect to have a"good start" after the Festival holiday, the bearing steel market may continue the steady consolidation state in February, or there may be a slight rise if transactions have support.
I. Output of Bearing Steel
From January to December, 2013, the output of crude bearing steel of major steel companies was 3,037,600 tons, increased by 1% compared with last year; during the same period, the steel output of major special steel companies was 286,760 tons, down 0.57% compared with last year. In December, the monthly output of crude bearing steel was 24.98 million tons, and the monthly output of bearing steel was 23.12 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 December in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to December 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 12 companies rose while 13 fell.
II. Performance of Domestic Bearing Steel Market in December:
(i) The export volume of bearing steel in December 2013 rose QoQ
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 10,444 tons in December, 2013, down 25.71% on year-on-year basis; the cumulative export volume in the same period was 121,214 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 fell slightly in January
The detailed situations of bearing steel markets across the country in January 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 4,900 yuan/ton, 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 8,700 yuan/ton.
Fig. 3 Average price trend of bearing steel in 2013
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 January, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 4,746 yuan/ton; the average price of GCr15Φ100mm die-casting annealed steel was 7,912 yuan/ton. (some modifications applied to the statistical method)
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
Fig. 4 Price Trend of Gr55 High Ferrochrome
Raw materials: The average price of high carbon ferrochrome was 6964 yuan/ton in January, down 47 yuan/ton compared with last month. Raw material price is expected to remain stable in weak trend in February, the supporting force of which on bearing steel production costs will be weakened.
Market mentality: Bearing steel market is relatively restrained before the holiday, and steel mills and traders did not to raise prices, which provided favorable conditions for price rise after the Festival. Many traders are looking forward to "a good start." However, due to the impact of slow release of demand, less transactions are expected, and it will be limited even if the price rises.
To sum up: the bearing steel market will continue to stabilize in February.
Table 1: Domestic Output of Crude Steel by Bearing Steel Manufacturers from January to December in 2013 (Unit: ton)
Seen from Table 1 that the top three for bearing steel output from January to December 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 12 companies rose while 13 fell.
II. Performance of Domestic Bearing Steel Market in December:
(i) The export volume of bearing steel in December 2013 rose QoQ
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 10,444 tons in December, 2013, down 25.71% on year-on-year basis; the cumulative export volume in the same period was 121,214 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 fell slightly in January
The detailed situations of bearing steel markets across the country in January 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 4,900 yuan/ton, 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 8,700 yuan/ton.
Fig. 3 Average price trend of bearing steel in 2013
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 January, the average price of GCr15Φ50mm continuous casting non-annealed steel in China was 4,746 yuan/ton; the average price of GCr15Φ100mm die-casting annealed steel was 7,912 yuan/ton. (some modifications applied to the statistical method)
III. The Bearing Steel Market is to operate in Vulnerable Consolidation:
Fig. 4 Price Trend of Gr55 High Ferrochrome
Raw materials: The average price of high carbon ferrochrome was 6964 yuan/ton in January, down 47 yuan/ton compared with last month. Raw material price is expected to remain stable in weak trend in February, the supporting force of which on bearing steel production costs will be weakened.
Market mentality: Bearing steel market is relatively restrained before the holiday, and steel mills and traders did not to raise prices, which provided favorable conditions for price rise after the Festival. Many traders are looking forward to "a good start." However, due to the impact of slow release of demand, less transactions are expected, and it will be limited even if the price rises.
To sum up: the bearing steel market will continue to stabilize in February.
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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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