Weekly Summary: 2023 China Bearing Steel Market Trend in First Week of December Continues to Rise

Weekly Summary: 2023 China Bearing Steel Market Trend in First Week of December Continues to Rise

1. Review of this week

【Price】

This week, the mainstream market price of bearing steel across the country continues to rise. The current average price of GCr15Φ30 round steel in the five major markets across the country is 5160.5 yuan/ton.

【Main market overview】

The price of bearing steel in Liaocheng market rose slightly, and merchants made appropriate replenishment. In the Liaocheng market, Juneng and Jiyuan steel plants have relatively abundant supply, and the inventories of many traders remain at around 1,000 tons. At present, the market transactions are average. There are many inquiries and comparisons in the downstream. People are more cautious in purchasing goods. The procurement is still based on rigid demand. However, with the price of raw materials at a high level, the price support of bearing steel is relatively strong and the price has increased. It is expected that in the short term Bearing steel prices in the Liaocheng market may remain stable and strong. Currently, Jiyuan Steel GCr15Φ16-29.5 is quoted at 4,730 yuan/ton, and Juneng Special Steel GCr15Φ16-90 is quoted at 4,580 yuan/ton.

The price of bearing steel in Hangzhou market continues to rise, and the transaction of low-level resources is acceptable. 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. As raw material prices continue to run at high levels, market quotations have increased. However, terminals and traders continue to make urgent purchases, and downstream and terminals have slightly replenished their inventories and are short of resources. In terms of sentiment, the rise in raw material prices has led to stable and positive market sentiment, and business sentiment has improved. Taken together, it is expected that the price of bearing steel in the Hangzhou market may mainly consolidate in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 was quoted at 4,650 yuan/ton, and Daye Special Steel GCr15Φ20-40 was quoted at 5,100 yuan/ton.

The price of bearing steel in Wuxi market was partially raised, 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. At present, with raw material prices continuing to be high, steel mills and traders have raised market prices, but transaction performance is relatively average, with most transactions being made at low prices. Taken together, it is expected that the price of bearing steel in the Wuxi market may be stable for the time being in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 was quoted at 4,650 yuan/ton, and Xingcheng Special Steel GCr15Φ31-90 was quoted at 5,820 yuan/ton.

The price of bearing steel in the Luoyang market rose slightly, but the demand did not meet expectations. This week, Luoyang market has a slight increase in arrivals of resources. Jiyuan, Daye Special Steel and Hegang Stone Steel have relatively abundant supply on the market, and some traders have inventories of around 1,000 tons. Downstream terminals continue to have rigid demand, the market atmosphere is deserted, and merchants have a strong wait-and-see attitude. Considering the high cost of raw material prices and the rising prices of steel mills, 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 4,850 yuan/ton, Daye Special Steel GCr15Φ20-40 was quoted at 5,150 yuan/ton, and Hegang Shigang GCr15Φ131-180 was quoted at 4,700 yuan/ton.

The price of bearing steel in Dalian market rose slightly, and the transaction performance was average. 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. Downstream terminal procurement is cautious, market demand is lower than the same period in previous years, and merchants mostly adopt a wait-and-see attitude to avoid risks. In view of the high price of raw materials, the ex-factory price of bearing steel in Jianlong Beiman increased by 200 yuan/ton this week. Overall, it is expected that Dalian bearing steel prices may fluctuate upward in the short term. Bengang Special Steel GCr15Φ81-130 is currently quoted at 4,700 yuan/ton, Dongte Co., Ltd. GCr15Φ86-180 is quoted at 4,850 yuan/ton, and Jianlong Beiman GCr15Φ30-75 is quoted at 4,800 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

Recently, raw material prices have continued to run at high levels, and spot market quotations have followed suit, but they have not yet been adjusted to the cumulative price increase in November, and business confidence has improved slightly. In terms of inventory, social inventory has declined this week, which shows that the demand release at the end of the month is acceptable. Merchants' operations are mostly based on shipment collection, and merchants should replenish inventory appropriately. Taken together, it is expected that the bearing steel market price may consolidate next week.