Bearing steel market will remain at the bottom in March
Resource from: CBCC Likes:174
Mar 25,2014
Overview: Since January 1, 2014, Myspic Steel Index is basically in the downstream channel, and has fallen to 96.4 by the end of February, the lowest point this year.
After the Spring Festival holiday, traders gradually returned to the market, but the "good start" did not come at the appointed time. Social stock increased by 14% in the first week after the holiday, 12% in the second week, and 4% in the third week; steel mills stock increased by 4.88 million tons year on year, and the inventory pressure is high in later period. Meanwhile, downstream enterises placed fewer orders, leading to light trading volume. As social and steel mill stock remain at high level, ore prices may continue to fall, the market is expected to remain at the bottom in March.
I. Performance of Domestic Bearing Steel Market in February:
(i) The export volume of bearing steel in Jannuary 2013 rose QoQ
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 10,226 tons in Jannuary, 2013, up 8.82% YoY; down 2.09% QoQ.
(ii) The prices in bearing steel market remain flat in February
The detailed situations of bearing steel markets across the country in February 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 4,100yuan/ton, and the spot goods of GCr15 die-casting annealed steel was 8,700 yuan/ton.
According to the statistics from Mysteeel.com: up to the end of February, 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:
Raw materials: The average price of high carbon ferrochrome was 6938 yuan/ton in February, down 25 yuan/ton compared with last month. Raw material price is expected to remain stable in weak trend in March, the supporting force of which on bearing steel production costs will be weakened.
On the whole, although raw material price still shows a downward trend, the decline range has been narrowed compared with the previous month. The average price of bearing steel was 4,741 yuan/ton in January 2014, arriving at lowest price in three years. However, compared with the current price, it is only 100 yuan/ton less, in other words, the market prices is less likely to fall sharply further. Although he current transaction situation is not satisfactory, turnover improvement is still possible as March has always been the peak demand season.
After the Spring Festival holiday, traders gradually returned to the market, but the "good start" did not come at the appointed time. Social stock increased by 14% in the first week after the holiday, 12% in the second week, and 4% in the third week; steel mills stock increased by 4.88 million tons year on year, and the inventory pressure is high in later period. Meanwhile, downstream enterises placed fewer orders, leading to light trading volume. As social and steel mill stock remain at high level, ore prices may continue to fall, the market is expected to remain at the bottom in March.
I. Performance of Domestic Bearing Steel Market in February:
(i) The export volume of bearing steel in Jannuary 2013 rose QoQ
According to the statistical data released by the ten major domestic bearing steel manufacturers, the bearing steel export volume was 10,226 tons in Jannuary, 2013, up 8.82% YoY; down 2.09% QoQ.
(ii) The prices in bearing steel market remain flat in February
The detailed situations of bearing steel markets across the country in February 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 4,100yuan/ton, and the spot goods of GCr15 die-casting annealed steel was 8,700 yuan/ton.
According to the statistics from Mysteeel.com: up to the end of February, 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:
Raw materials: The average price of high carbon ferrochrome was 6938 yuan/ton in February, down 25 yuan/ton compared with last month. Raw material price is expected to remain stable in weak trend in March, the supporting force of which on bearing steel production costs will be weakened.
On the whole, although raw material price still shows a downward trend, the decline range has been narrowed compared with the previous month. The average price of bearing steel was 4,741 yuan/ton in January 2014, arriving at lowest price in three years. However, compared with the current price, it is only 100 yuan/ton less, in other words, the market prices is less likely to fall sharply further. Although he current transaction situation is not satisfactory, turnover improvement is still possible as March has always been the peak demand season.
(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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