Bearing steel market will begin to revive in March
Resource from: CBCC Likes:112
Apr 05,2016
Overview
In February, the domestic bearing steel market showed a upward trend, which gradually increased the traders' confidence. Up to now, the price of low-grade continuous casting non-annealed steel was 2420 yuan/ton; the price of medium-grade resources was 2700 yuan/ton; the price of high-end resources was 4000 yuan/ton; the price of forgings was 5450 yuan/ton. In the Year of the Monkey, bearing steel manufacturers raised the price mainly in the range of 100 yuan/ton due to the further increase in extra-fine steels. The current market transaction is still not ideal, it may get improved as March is the traditional peak demand season. Seen from the current trend, bearing steel market is expected upward correction March, prices may also rise.
I. Bearing Steel Output
1. Output in 2015: crude bearing steel and steel both declined year-on-year
According to the statistics of Special Steel Association, in 2015, the output of bearing crude steel reported by domestic major steel companies was 2.5833 million tons, decreased by 12.11% over the same period last year; in the same period, the steel output of domestic major steel companies was 2.4266 million tons, decreased by 15.20% over the same period last year.
For details, see Figure 1:
2. Planning & Scheduling in March 2016: increased or decreased
According to a random investigation conducted by the writer on the output of several large domestic bearing steel mills this month, steel stocks rose further during the Spring Festival, the same with the selling pressure. Some of the steel mills cut their production while others delayed orders. Coupled with the bullish market outlook, production scheduling increased as a whole. The details are shown in the following table:
II. Bearing Steel Markets
1. Bearing steel exports dropped slightly in January
According to the statistics from domestic 10 major bearing steel production enterprises: Domestic bearing steel export was 122,020 tons in January, increased by 52.41% YoY while decreased by 5.59% MoM. Seen from Figure 2 that the top three on the list of bearing steel export volume are still Xingcheng Special Steel, Daye Speical Steel and Dongbei Speical Steel.
Wherein, Xingcheng Special Steel reported the largest export volume of bearing steel, 11,963 tons, accounting for the vast majority of bearing steel exports.
2. Bearing steel market will take on a steady rise in February
Market confidence gradually increased after the Spring Festival holiday. Bearing steel prices have been driven up by the further rise in the market price of extra-fine steels, and maintains a strong momentum. Most bearing steel manufacturers raised the price, mainly in the range of 100 yuan/ton. Based on the current market trend and considering that March is the peak demand season, the bearing steel price is expected to keep rising.
III. Relevant Markets
1. Raw materials market
Imported ore price greatly increased in February, closed at 49.5 dollar/ton at the end of the month from 42.6 dollar/ton last month; the price of carbon steel scrap price slightly increased, closed at 988 yuan/ton by the end of the month, up by 3.54% over the previous month; the price of high carbon ferrochrome was slightly adjusted nationwide, closed at 5023 yuan/ton by the end of the month. Combined with the current supply and demand situation and the strong rising trend in steel market, the price of raw material is more likely to continue the stable rising trend in March.
2. Downstream market
According to the statistical analysis of China Association of Automobile Manufacturers, the output and sales of automobiles slightly decreased MoM, yet increased YoY.
Output and sales performance of main products: passenger vehicles fell below the industry average level MoM, yet higher than the industry average level YoY; commercial vehicles decreased both MoM and YoY, wherein, the decline of MoM sales was more obvious. In January, the output of automobiles was 2.452 million units, showing a 7.68% MoM decline and a 7.14% YoY rise; the sales of automobiles was 2,500,600 units, showing a 10.23% MoM decline and a 7.72% YoY rise.
IV. Conclusions
Bearing steel price steadily rose in February, but the downstream demand remained weak. After the Spring Festival, bearing steel mills raised prices due to the rise of raw material prices, costs and other multi-factors. The overall performance in steel market is poor this year, but market participants have great confidence in the market outlook, which will have some effect on the demand in bearing steel market. The price of raw materials continues to rise, which raises the cost of production, thus supports the future price of bearing steel. Besides, some steel mills have been receiving orders, Xingcheng Special Steel, Baosteel Special Steel and Beiman Special Steel, for example, which increases some confidence in rasing prices.
Taken together, the bearing steel price is expected to keep rising in March, but the rate of increase will not be great at current macroeconomic pressure.
2. Planning & Scheduling in March 2016: increased or decreased
According to a random investigation conducted by the writer on the output of several large domestic bearing steel mills this month, steel stocks rose further during the Spring Festival, the same with the selling pressure. Some of the steel mills cut their production while others delayed orders. Coupled with the bullish market outlook, production scheduling increased as a whole. The details are shown in the following table:
II. Bearing Steel Markets
1. Bearing steel exports dropped slightly in January
According to the statistics from domestic 10 major bearing steel production enterprises: Domestic bearing steel export was 122,020 tons in January, increased by 52.41% YoY while decreased by 5.59% MoM. Seen from Figure 2 that the top three on the list of bearing steel export volume are still Xingcheng Special Steel, Daye Speical Steel and Dongbei Speical Steel.
Wherein, Xingcheng Special Steel reported the largest export volume of bearing steel, 11,963 tons, accounting for the vast majority of bearing steel exports.
2. Bearing steel market will take on a steady rise in February
Market confidence gradually increased after the Spring Festival holiday. Bearing steel prices have been driven up by the further rise in the market price of extra-fine steels, and maintains a strong momentum. Most bearing steel manufacturers raised the price, mainly in the range of 100 yuan/ton. Based on the current market trend and considering that March is the peak demand season, the bearing steel price is expected to keep rising.
III. Relevant Markets
1. Raw materials market
Imported ore price greatly increased in February, closed at 49.5 dollar/ton at the end of the month from 42.6 dollar/ton last month; the price of carbon steel scrap price slightly increased, closed at 988 yuan/ton by the end of the month, up by 3.54% over the previous month; the price of high carbon ferrochrome was slightly adjusted nationwide, closed at 5023 yuan/ton by the end of the month. Combined with the current supply and demand situation and the strong rising trend in steel market, the price of raw material is more likely to continue the stable rising trend in March.
2. Downstream market
According to the statistical analysis of China Association of Automobile Manufacturers, the output and sales of automobiles slightly decreased MoM, yet increased YoY.
Output and sales performance of main products: passenger vehicles fell below the industry average level MoM, yet higher than the industry average level YoY; commercial vehicles decreased both MoM and YoY, wherein, the decline of MoM sales was more obvious. In January, the output of automobiles was 2.452 million units, showing a 7.68% MoM decline and a 7.14% YoY rise; the sales of automobiles was 2,500,600 units, showing a 10.23% MoM decline and a 7.72% YoY rise.
IV. Conclusions
Bearing steel price steadily rose in February, but the downstream demand remained weak. After the Spring Festival, bearing steel mills raised prices due to the rise of raw material prices, costs and other multi-factors. The overall performance in steel market is poor this year, but market participants have great confidence in the market outlook, which will have some effect on the demand in bearing steel market. The price of raw materials continues to rise, which raises the cost of production, thus supports the future price of bearing steel. Besides, some steel mills have been receiving orders, Xingcheng Special Steel, Baosteel Special Steel and Beiman Special Steel, for example, which increases some confidence in rasing prices.
Taken together, the bearing steel price is expected to keep rising in March, but the rate of increase will not be great at current macroeconomic pressure.
(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.
