Bearing steel price will stay high in April
Resource from: CBCC Likes:116
Apr 13,2016
Overview
From January to February, the output of crude steel decreased by 14.74% YoY, the output of bearing steel decreased by 10.82% YoY, and the export volume increased by 69.81% YoY.
Bearing steel price rose strongly in March, and the trading volume slightly increased. Up to now, the price of low-grade continuous casting non-annealed steel was 2700 yuan/ton; the price of medium-grade resources was 2900 yuan/ton; and the price of high-end resources was 4200 yuan/ton. The sharp rise in raw material prices has increased the production costs, so bearing steel mills are willing to push up the price again. Although the demand in downstream end customers remains to release, the bearing steel price is expected to remain high or go higher in April taking into account that April is the traditional peak season, and the steel mills' willingness to raise price remains relatively strong.
I. Bearing Steel Output
1. Output from January to February: crude bearing steel and bearing steel both declined year-on-year
According to the statistics of Special Steel Association, from January to February in 2016, the output of bearing crude steel reported by domestic major steel companies was 394,600 tons, decreased by 14.74% over the same period last year; in the same period, the steel output of domestic major steel companies was 403,000 tons, decreased by 10.82% over the same period last year. For details, see Figure 1:
2. Output of finished bearing steel from January to February: decreased YoY as reported by the majority of steel mills
3. Planning & Scheduling in April 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, Xingcheng Special Steel, Juneng Steel, Benxi Steel and Dongbei Special Steel had relatively steady growth in steel output, while Baosteel Special Steel had a decrease in yield for being focused on lean product development. Wherein, the north and northeast markets are dominated by Dongbei Special Steel and Shijiazhuang Steel, East China market is dominated by Xingcheng Special Steel, Benxi Steel and Baosteel Special Steel and the Central China market is dominated by Xinyegang Steel. The details are shown in the table below:
II. Bearing Steel Markets
1. Bearing steel exports increased slightly in February
According to the statistics from domestic 10 major bearing steel production enterprises: Domestic bearing steel export was 13,597 tons in January, increased by 69.81% YoY and 11.4% 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, 12,588 tons, accounting for the vast majority of bearing steel exports.
2. Bearing steel market rose sharply in March
Bearing steel price kept rising in March. Leading manufacturer Xingcheng Special Steel fell short of demand, with the price going in a stable rising trend. Benxi Steel shrugged off the long-run loss, raising the quoted price by 400 yuan/ton. Shijiazhuang Steel, Nanjing Steel, Juneng Steel and other bearing steel manufacturers raised their prices to some degree. Mainstream market price also showed a rising trend under the price pressure of steel mills. Based on the current situation, bearing steel price is expected to rise further in April in the range of about 50-100 yuan/ton.
III. Relevant Markets
1. Raw materials market
Imported ore price ran in consolidation in March, closed at 54 dollar/ton by the end of the month; the price of carbon steel scrap was on the rise, closed at 1132 yuan/ton by the end of the month, up by 14.58% over the previous month; the price of high carbon ferrochrome was slightly adjusted natiowide, closed at 5027 yuan/ton by the end of the month. Combined with the current supply and demand situation and profit jumping of steel mills, traders will not lower prices for sales, so the price of raw materials is more likely to narrowly rise in April.
2. Downstream market
According to the statistical analysis of China Association of Automobile Manufacturers, the output and sales of automobiles decreased sharply over the previous month yet decreased slighlty YoY in February. From January to February, the output and sales of automobiles were higher YoY. The growing rate of passenger vehicles slowed over the previous year while the decline range of commercial vehicles narrowed. In February, the auto production was 1,611,800, with a decline of 34.43% MoM, 1.31% YoY; the sales was 1,580,900, with a decline of 36.94% MoM, 0.86% YoY. From January to February, the the output and sales of automobiles were 4.0691 million and 4.0869 million, up by 3.74 % and 4.37 % YoY.
IV. Conclusions
In the context of a strong rebound in raw materials, the price of bearing steel has been pushed to a higher level. As the cost of steel increased, most of the mills have raised prices. Wherein, Benxi Steel reported a cumulative increase of up to 400 yuan/ton in March, and Xingcheng Steel, Shijiazhuang Steel, Nanjing Stee and Beiman Steel all had an adjustment of 200 yuan/ton.
The price rises of bearing steel mills will futher push the upward trend in domestic bearing steel market.
Given the strong support in raw material price which contributes to the further increase in production cost of bearing steel, and coupled with reduced production capacity, the steel inventory pressure is not high for now. Hence, the bearing steel price is expected to stay high in April. Some mill may raise the prices further.
2. Output of finished bearing steel from January to February: decreased YoY as reported by the majority of steel mills
3. Planning & Scheduling in April 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, Xingcheng Special Steel, Juneng Steel, Benxi Steel and Dongbei Special Steel had relatively steady growth in steel output, while Baosteel Special Steel had a decrease in yield for being focused on lean product development. Wherein, the north and northeast markets are dominated by Dongbei Special Steel and Shijiazhuang Steel, East China market is dominated by Xingcheng Special Steel, Benxi Steel and Baosteel Special Steel and the Central China market is dominated by Xinyegang Steel. The details are shown in the table below:
II. Bearing Steel Markets
1. Bearing steel exports increased slightly in February
According to the statistics from domestic 10 major bearing steel production enterprises: Domestic bearing steel export was 13,597 tons in January, increased by 69.81% YoY and 11.4% 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, 12,588 tons, accounting for the vast majority of bearing steel exports.
2. Bearing steel market rose sharply in March
Bearing steel price kept rising in March. Leading manufacturer Xingcheng Special Steel fell short of demand, with the price going in a stable rising trend. Benxi Steel shrugged off the long-run loss, raising the quoted price by 400 yuan/ton. Shijiazhuang Steel, Nanjing Steel, Juneng Steel and other bearing steel manufacturers raised their prices to some degree. Mainstream market price also showed a rising trend under the price pressure of steel mills. Based on the current situation, bearing steel price is expected to rise further in April in the range of about 50-100 yuan/ton.
III. Relevant Markets
1. Raw materials market
Imported ore price ran in consolidation in March, closed at 54 dollar/ton by the end of the month; the price of carbon steel scrap was on the rise, closed at 1132 yuan/ton by the end of the month, up by 14.58% over the previous month; the price of high carbon ferrochrome was slightly adjusted natiowide, closed at 5027 yuan/ton by the end of the month. Combined with the current supply and demand situation and profit jumping of steel mills, traders will not lower prices for sales, so the price of raw materials is more likely to narrowly rise in April.
2. Downstream market
According to the statistical analysis of China Association of Automobile Manufacturers, the output and sales of automobiles decreased sharply over the previous month yet decreased slighlty YoY in February. From January to February, the output and sales of automobiles were higher YoY. The growing rate of passenger vehicles slowed over the previous year while the decline range of commercial vehicles narrowed. In February, the auto production was 1,611,800, with a decline of 34.43% MoM, 1.31% YoY; the sales was 1,580,900, with a decline of 36.94% MoM, 0.86% YoY. From January to February, the the output and sales of automobiles were 4.0691 million and 4.0869 million, up by 3.74 % and 4.37 % YoY.
IV. Conclusions
In the context of a strong rebound in raw materials, the price of bearing steel has been pushed to a higher level. As the cost of steel increased, most of the mills have raised prices. Wherein, Benxi Steel reported a cumulative increase of up to 400 yuan/ton in March, and Xingcheng Steel, Shijiazhuang Steel, Nanjing Stee and Beiman Steel all had an adjustment of 200 yuan/ton.
The price rises of bearing steel mills will futher push the upward trend in domestic bearing steel market.
Given the strong support in raw material price which contributes to the further increase in production cost of bearing steel, and coupled with reduced production capacity, the steel inventory pressure is not high for now. Hence, the bearing steel price is expected to stay high in April. Some mill may raise the prices further.
(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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