Weekly Summary:2022 China Bearing Steel Market Trend in Fourth Week of February Will down 1.15%

1. The price of mainstream varieties of excellent special steel

The prices of mainstream premium special steel products fell slightly this week. Among them, 45# closed at 5487 yuan/ton, down 49 yuan/ton from last week, 40Cr closed at 5714 yuan/ton, down 50 yuan/ton from last week, and 20CrMnTi closed at 5799 yuan/ton. Last week, it fell 71 yuan/ton, and CrMo closed at 6109 yuan/ton, down 59 yuan/ton from last week.

2. The main market price and spread performance of special steel

This week, Hangzhou, the main market for high-quality special steel in the country, closed 5440/ton, and Shandong received 5,350 yuan/ton, with a price difference of 90 yuan/ton in leading cities.

Zhejiang market: Zhejiang special steel market prices continued to fall this week. The mainstream price above 45#Φ30 is 5440 yuan/ton Huai 5460 yuan/ton South 5440 yuan/ton, Yuanli (direct delivery) 5400 yuan/ton Zhongtian 5440 yuan/ton Dongfang 5420 yuan/ton. On the market side: prices continued to fall this week. At the beginning of the week, market transactions were not smooth. Traders' mentality was acceptable, and a few had dark shipments. Mid-week futures accelerated the decline and drove market sentiment. Some ten-day fixed-price traders led the decline in price cuts, and overall market transactions Generally; the price of steel mills is fixed at the end of the week, and the market follows the decline. In general, the current Zhejiang regional high-quality steel inventory base is relatively large, which will put certain pressure on the market in the short term. It is expected that the downstream Zhejiang high-quality steel market will continue to operate weakly.

Jiangsu market: The market price of Jiangsu special steel fell this week, and the mainstream price of 45#Φ30 is now 5440 yuan/ton in Huaigang, Dongfang Special Steel Plant raises 5400 yuan/ton, Hangzhou Steel 5400 yuan/ton, 40Cr Huaigang 5680 yuan / Ton, gear Laiwu 5640 yuan / ton, chrome molybdenum Laiwu steel 5950 yuan / ton. In terms of steel mills, the total inventory of bars in Jiangsu You Special Steel Plant was 454,000 tons, an increase of 10,600 tons from last week, an increase of 2.39% month-on-month, and an increase of 167,100 tons from the same period last year, an increase of 58.24% year-on-year. In terms of the market, downstream demand is still poor, coupled with the downturn in mid-week futures, the market is not motivated to purchase, and the pressure of traders to lower the inventory has been highlighted, and prices have fallen sharply. In terms of steel mills, there are more inspections and production restrictions. In addition, some steel mills have a strong intention to raise prices within ten days, which will support the market price. It is expected that the price of Jiangsu special steel will be under pressure next week.

Central China market: This week, the price of the special steel market in Central China was weak and stable. Zhengzhou 45# Jinan Steel is 5630 yuan/ton, up 30 yuan/ton from last week; Changsha 45# Xianggang is 5410 yuan/ton, down 20 yuan/ton from last week; Wuhan 45# Xianggang is 5390 yuan/ton, up from last week Fell 60 yuan/ton. Some areas of Zhengzhou City were unblocked, and traders’ shipments did not return to normal levels. The inventories of traders in Hubei and Hunan increased slightly. Due to the recent orders for construction machinery and other downstream equipment, the shipment situation of traders was getting worse and worse, and prices dropped slightly at the end of the week. It is expected that the Huazhong special steel market will continue to weaken the demand tone next week, and the market price will be stable.

Shandong market: This week, the price of Shandong special steel market declined slightly. Local special steel price 45# Luli 5350 yuan/ton, Fulun 5350 yuan/ton out of stock, Guangfu Dayuan 5360 yuan/ton, Xiwang 5530 Yuan/ton, Weigang 5460 Yuan/ton, Juneng 5460 Yuan/ton, Laiwu Steel 5420 Yuan/ton. Market transactions continued to be sluggish. Affected by the decline in futures this week, the selling price dropped slightly, with a cumulative drop of about 50 yuan/ton. Shandong's steel mills have reduced their output greatly, they have a strong willingness to top prices, and they have strong support for market prices. It is expected that the local market prices will continue to decline in the short term.

Chongqing market: This week, the overall price of Chongqing special steel market fell by 50 yuan/ton. The current market price is 45#5430 yuan/ton, Xining Special Steel 5520 yuan/ton, 40Cr5720 yuan/ton, 20CrMnTi5870 yuan/ton, chromium molybdenum 6350 yuan /Ton. At present, the total stock of bars in the Chongqing market is 110,000 tons, an increase of 4 million tons from last week. The price of high-quality steel in the Chongqing market dropped slightly this week, inventories are still high, and the decrease in stocks is slow. Demand release this week is not as expected. The poor market transactions, coupled with the continued decline of black futures and the decline in East China market prices, have made the market wait-and-see sentiment strong. On the whole, it is expected that Chongqing's special steel market will continue to fluctuate and run mainly at a weaker pace next week.

3. Summary of price adjustments by special steel mills

From February 21st to February 25th, the price adjustments of major special steel mills across the country are as follows: A total of 7 steel mills released price adjustment information in this period, and a total of 11 price adjustment information has been released. In this period, steel mills have adjusted their prices. The prices of steel mills have been mixed. Next week, we should continue to pay attention to the impact of consumer demand and steel mill maintenance.

4. Social inventory performance of excellent special steel

The total inventory of samples of high-quality special steel bars nationwide was 900,400 tons, an increase of 10,200 tons from the previous month, an increase of 1.15%.

The transaction volume of sample enterprises of high-quality special steel bars nationwide was 288,100 tons, a decrease of 13 thousand tons or 0.45% from the previous month.

5. The excellent special steel market will run weakly next week

Based on the above situation, the price dropped slightly this week. Although the number of inspections and repairs in the excellent steel mills in August was large, the inventories of traders and steel mills showed an increasing trend, and the inspections and repairs of the steel mills had no effect on the current market inventory. In terms of transactions, the transaction volume of special steel continued to decline this week, and traders’ shipments "faced a cold winter." Stimulating the economic troika: consumption, exports, and investment. These three factors are currently weakening. Although there are signs of an increase in operating rates this month, the downstream production and sales data of excellent special steel has declined. According to the survey, some forging plants have already faced shutdowns. Based on the above situation, it is expected that Excellent Special Steel will operate weakly next week.