Monthly data:Bearing steel market will continue to consolidate upward in April

Summary: From January to February, domestic bearing steel crude steel output decreased by 13.46% year-on-year, and bearing steel output decreased by 19.81%. Up to now, the low-cost resources for continuous casting and non-annealing materials in China are 4,600 yuan/ton; the mid-range materials are 4,800 yuan/ton; the high-end materials are 5,800 yuan/ton. It is expected that the bearing steel market is expected to consolidate in April.

I. Domestic bearing steel production

1. Production from January to May: bearing crude steel, steel both fell

According to the statistics of the Special Steel Association, the output of crude steel for bearing steel of the main special steel enterprises in China in January and February 2019 was 568,300 tons, down 13.46% compared with the same period of last year; the main special steel in China in January and February 2019 The company's bearing steel output was 506,800 tons, a decrease of 19.81% compared with the same period last year. See Figure 1.

2, January-February bearing steel production of various production enterprises: steel mill output decreased year-on-year

As can be seen from Figure 2, the current bearing steel output is: CITIC Special Steel (Xingcheng Special Steel, Daye Special Steel, Qingdao Iron and Steel), Giant Energy and Zhongtian, accounting for 67% of the total output. In the first two months of 2001, the overall output of bearing steel was decreasing. The output of steel plants such as Giant Energy, Xingtai and Beiman increased slightly compared with the same period of last year. Steel mills such as Nangang, Shagang, Zhongtian, Xingcheng and Yegang Production has decreased.

Ⅱ.The domestic bearing steel market performance

Looking back at the bearing steel market in March, the price of bearing steel was consolidating upward. Under the cost support, the market price of bearing steel is expected to rise slightly in April.

Ⅲ. Relevant market information

1. Raw material price:

In March, the price of imported ore market fluctuated within a narrow range, and the price at the end of the month was 86.9 US dollars per dry ton. The overall carbon market was weak. The average price at the end of the month was 2,242 yuan/ton, down by 3.02% from the end of last month. The high-carbon ferrochrome market rose slightly, and the average price at the end of the month was 7021 yuan/ton. It is expected that the raw material market price will have limited upside potential in April.

2. Downstream industry

According to the statistical analysis of China Association of Automobile Manufacturers, in February 2019, due to the influence of the Spring Festival holiday, the production and sales of automobiles decreased rapidly, and the decline of passenger vehicles was more obvious. Compared with the same period of last year, the production and sales of commercial vehicles showed a small increase. The car has dropped. In January-February, the production and sales of automobiles continued to decline. The decline in passenger vehicles was higher than that in the industry, and the production and sales of commercial vehicles increased slightly. In February, the automobile production was 1,409,800 units, a decrease of 40.40% from the previous month and a decrease of 17.37% from the same period of last year. The sales volume was 1,481,600 units, a decrease of 37.41% from the previous month and a decrease of 13.77% from the same period last year. In January-February, the production and sales of automobiles were 3.776 million and 3.851 million, down 14.08% and 14.94% year-on-year.

Ⅳ. Conclusion

In March, the market price of bearing steel rose in a narrow range, and the price difference of some steel mills was 300-400 yuan/ton. It is expected that the price of bearing steel in April will continue to consolidate upward trend.