Weekly Summary: 2023 China Bearing Steel Market Trend in Third Week of October is Steady and Declining

Weekly Summary: 2023 China Bearing Steel Market Trend in Third Week of October is Steady and Declining

1. Review of this week

【Price】

This week, the mainstream market price of bearing steel across the country has declined steadily. The current average price of GCr15Φ30 round steel in the five major markets across the country is 4,686 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. At this stage, market demand has not improved significantly, and the market supply and demand situation continues to be weak. Most merchants are cautious and wait-and-see, and are willing to raise prices. Taken together, it is expected that the price of bearing steel in the Liaocheng market may be temporarily stable 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.

The price of bearing steel in the Hangzhou market is running weakly, and downstream purchases continue to be in urgent demand. The actual arrival situation in the Hangzhou market has improved slightly recently. The spot inventory is mainly resources from Zhongtian Iron and Steel, Nanjing Iron and Steel, and Daye Special Steel. Most traders' inventory remains above 1,000 tons. At present, the current market demand release is not as good as expected. In addition, downstream terminal companies are not enthusiastic about purchasing, and the transaction atmosphere is average. As raw material prices continue to fluctuate, downstream purchases are generally cautious, and merchants are under increasing pressure to ship, which is a bit pessimistic. Taken together, it is expected that the price of bearing steel in the Hangzhou market may fluctuate and weaken 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 5,050 yuan/ton.

The price of bearing steel in Wuxi market fell slightly, and the transaction volume was 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 performance is average, and the market sentiment is more cautious and wait-and-see. Terminals replenish stocks as needed based on order conditions. Some traders choose to ship goods at a discount to facilitate transactions, 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 5,820 yuan/ton.

The price of bearing steel in the Luoyang market remained stable, but the demand release did not meet expectations. At present, the Luoyang market is dominated by Jiyuan, Daye Special Steel and Hegang Stone Steel, and some traders have inventories of around 1,000 tons. The market fundamentals have not changed much recently. Downstream terminals and traders are purchasing on demand, transactions are tepid, and sales have not reached peak season expectations. In view of the weak demand performance, the shipment speed has slowed down, and the social treasury showed a slight increase. 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.

The price of bearing steel in the Dalian market is temporarily stable, and merchants are low in willingness to replenish their stocks. In the Dalian market, Benxi Iron and Steel Co., Ltd., Dongte Steel Co., Ltd. and Jianlong Beiman Steel Co., Ltd. have abundant supply, and many traders have stocks of 3,000-4,000 tons. The procurement intensity of downstream terminals is still weak, and the performance in the peak season is not strong. Merchants continue to wait and see and have insufficient willingness to replenish their inventories. The demand improvement is not obvious, the market has a situation of strong supply and weak demand, and the market price lacks room for increase. 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】

No steel mills have released price adjustment information in this issue. Next week, we should continue to pay attention to the impact of consumer demand and steel mill maintenance.

2. Outlook for next week

It is expected that the bearing steel market price will be mainly stable next week, with range fluctuations.