Weekly Summary: 2023 China Bearing Steel Market Trend in Second Week of November Rises Steadily

Weekly Summary: 2023 China Bearing Steel Market Trend in Second Week of November Rises Steadily

1. Review of this week

【Price】

This week, the mainstream market price of bearing steel across the country has increased steadily. The current average price of GCr15Φ30 round steel in the five major markets across the country is 4,692 yuan/ton.

[Main market overview]

The price of bearing steel in Liaocheng market is temporarily stable, and merchants are cautiously waiting to see. In the Liaocheng market, Juneng and Jiyuan steel plants have relatively abundant supply, and the inventories of many traders remain at around 1,500 tons. At present, the space for release of demand from terminal enterprises is limited, the market trading atmosphere is average, and merchants are under great price competition pressure. Some traders choose to loosen their quotations to promote shipments, but the actual effect is average, and merchants' willingness to stock up is limited. Taking into account the rise in raw material prices, some traders still have expectations for the market outlook. It is expected that the price of bearing steel in the Liaocheng market may stabilize and strengthen 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 has increased in some cases, and downstream purchases continue to be in urgent demand. 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 around 1,000 tons. At present, the market fundamentals have not changed much. Terminals and traders continue to purchase for urgent needs. Terminal companies are cautious in purchasing. Demand release has not met expectations. Downstream and terminals have slightly replenished their inventories and are short of resources. Transactions are not smooth at high market levels. The market supply and demand are both weak. or will continue. Taken together, it is expected that the price of bearing steel in the Hangzhou market may stabilize and strengthen in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 was quoted at 4,580 yuan/ton, and Daye Special Steel GCr15Φ20-40 was quoted at 5,050 yuan/ton.

The price of bearing steel in Wuxi market has risen steadily, but the demand is still lower than expected. 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. At present, downstream terminal enterprises and traders continue to purchase goods for urgent needs, and most choose to replenish their stocks on a small scale. The market is generally deserted, and transactions are lower than the same period in previous years. However, considering that the cost support of bearing steel is acceptable, business sentiment has eased. Taken together, it is expected that the price of bearing steel in the Wuxi market may be temporarily stable in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 was quoted at 4,580 yuan/ton, and Xingcheng Special Steel GCr15Φ31-90 was quoted at 5,820 yuan/ton.

The price of bearing steel in the Luoyang market was stable and strong, but the transaction did not meet expectations. There are not many resources arriving in the Luoyang market this week. Jiyuan, Daye Special Steel and Hegang Shigang are the main sources of goods on the market. Some traders have inventories of around 1,000 tons. Downstream terminals and traders continue to be cautious in purchasing, market demand is lower than expected, merchants are in a wait-and-see mood, and their willingness to restock is low. In view of the recent increase in raw material costs, it is expected that Luoyang bearing steel prices may fluctuate and strengthen 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 4,670 yuan/ton.

The price of bearing steel in Dalian market remained stable, and the transaction performance was average. The Dalian market is dominated by Benxi Steel, Dongte Co., Ltd. and Jianlong Beiman, and many traders have stocks of 3,000-4,000 tons. Downstream terminals continue to have urgent purchases, and the shipment speed is slow. The demand release is lower than the same period in previous years, and most merchants are cautious and wait-and-see. Considering that the price of raw materials is relatively high and the maintenance plan of some steel plants is implemented, the output of bearing steel may be reduced. It is expected that the price of Dalian bearing steel may fluctuate upward 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 may run smoothly next week.