Weekly Summary: 2023 China Bearing Steel Market Trend in Second Week of October Remain Stable and Strong

Weekly Summary: 2023 China Bearing Steel Market Trend in Second Week of October Remain Stable and Strong

1. Review of this week

【Price】

This week, the mainstream market price of bearing steel across the country has been stable and strong. The current average price of GCr15Φ30 round steel in the five major markets across the country is 4,696 yuan/ton.

[Main market overview]

The price of bearing steel in Liaocheng market is stable and strong, and the demand release is less than expected. In the Liaocheng market, Juneng and Jiyuan steel plants have relatively abundant supply, and the inventories of many traders remain at around 2,000 tons. According to market feedback, the price of bearing steel after the holiday has stabilized and strengthened after steel mills raised their ex-factory prices. However, demand has not improved significantly, and the market supply and demand situation continues to be strong, and many merchants are cautious and wait-and-see. Taken together, it is expected that the price of bearing steel in the Liaocheng market may be stable to strong in the short term. Currently, Jiyuan Steel GCr15Φ16-29.5 is quoted at 4,680 yuan/ton, and Juneng Special Steel GCr15Φ16-90 is quoted at 4,400 yuan/ton.

Bearing steel prices in the Hangzhou market are on the strong side, and downstream purchases are based on demand. At present, the spot inventory in the Hangzhou market is dominated by resources from Zhongtian Steel, Nanjing Steel, and Daye Special Steel, and most traders maintain inventories of more than 1,500 tons. At this stage, social inventory has increased slightly, but terminal companies are cautious in purchasing and purchase more on demand. Market transactions have slowed down, and merchants' mentality is stable and they are not bullish in the later period. Taken together, it is expected that the price of bearing steel in the Hangzhou market may fluctuate in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 was quoted at 4,550 yuan/ton, and Daye Special Steel GCr15Φ20-40 was quoted at 5,100 yuan/ton.

Bearing steel prices in the Wuxi market were generally stable and transactions were average. The spot stocks in the Wuxi market are mainly resources from Zhongtian Steel, Xingcheng Special Steel, and Benxi Iron and Steel, and most traders have inventories of more than 1,000,000 tons. The current market demand is not very strong, and the overall market sentiment is not high. Some merchants choose to lower prices to facilitate transactions in order to increase shipments, but the actual transactions are average. Taken together, it is expected that the price of bearing steel in the Wuxi market may remain volatile in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 was quoted at 4,550 yuan/ton, and Xingcheng Special Steel GCr15Φ31-90 was quoted at 5,870 yuan/ton.

The price of bearing steel in the Luoyang market is running smoothly, and the demand is lower than expected. At present, there are not many new resources in the Luoyang market. The market is mainly supplied by Jiyuan, Daye Special Steel and Hegang Stone Steel, and some traders have inventories of around 1,000 tons. There has been little change in market fundamentals recently, with downstream companies purchasing on demand and overall transactions being tepid, falling short of peak season expectations. In view of the slow release of demand, the overall social inventory has shown a slight accumulation trend. Overall, it is expected that the price of bearing steel in Luoyang may fluctuate slightly in the short term. As of press time, Jiyuan Steel GCr15Φ6.5-23 was quoted at 4,800 yuan/ton, Daye Special Steel GCr15Φ20-40 was quoted at 5,150 yuan/ton, and Hegang Shigang GCr15Φ131-180 was quoted at 4,650 yuan/ton.

Bearing steel prices in Dalian market remained stable and transactions were average. The Dalian market is relatively rich in supply from Benxi Steel, Dongte Steel Co., Ltd. and Jianlong Beiman, and many traders have stocks of 3,000-4,000 tons. The procurement intensity of downstream terminals is still insufficient, showing the situation of "not prosperous in the peak season", and most merchants have a wait-and-see attitude. The improvement in demand is not obvious, the market has a situation of strong supply and weak demand, and there is insufficient power to increase market prices. Overall, it is expected that Dalian bearing steel prices may fluctuate within a narrow range in the short term. Bengang Special Steel GCr15Φ81-130 is currently quoted at 4,650 yuan/ton, Dongte Co., Ltd. GCr15Φ86-180 is quoted at 4,800 yuan/ton, and Jianlong Beiman GCr15Φ30-75 is quoted at 4,750 yuan/ton.

【Steel factory】

The price adjustment situation of major bearing steel mills across the country from October 7 to October 13 is as follows: A total of 2 steel mills released price adjustment information in this period, with a total of 2 price adjustment information released. Next week, we should continue to pay attention to the impact of consumer demand and steel mill maintenance.

2. Outlook for next week

Taken together, it is expected that the bearing steel market price may fluctuate and weaken next week.