Weekly Summary: 2023 China Bearing Steel Market Trend in Third Week of December is Stable but relatively Strong

Weekly Summary: 2023 China Bearing Steel Market Trend in Third Week of December is Stable but relatively Strong

1. Review of this week

【Price】

This week, the mainstream market price of bearing steel across the country is stable and relatively strong. 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 increased steadily, and merchants replenished their stocks appropriately. 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, downstream on-demand procurement is mainly based on demand. Although raw material prices continue to be high, considering the average market demand, merchants are not enthusiastic about price expectations. Downstream procurement often inquires for price comparisons and is more cautious when purchasing goods. 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 4,730 yuan/ton, and Juneng Special Steel GCr15Φ16-90 is quoted at 4,600 yuan/ton.

Bearing steel prices in the Hangzhou market were raised individually, and transactions were average. 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 price of raw materials is still strongly supported, and some steel mills have also raised the ex-factory price of bearing steel. However, the market transaction prices have not changed much and are mostly stable. The prices of scarce specifications resources have increased slightly, and the transactions are average. Taken together, it is expected that the price of bearing steel in the Hangzhou market may fluctuate in a range in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 was quoted at 4,670 yuan/ton, and Daye Special Steel GCr15Φ20-40 was quoted at 5,100 yuan/ton.

The price of bearing steel in the Wuxi market remains stable, and market demand is 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. Market demand performance is average, and downstream procurement is still dominated by rigid demand. As raw material prices continue to be high, market sentiment is stable and positive. However, market prices are affected by weak demand, and prices are mostly stable. In terms of inventory, compared with last week, the inventory decline this week is not large, and merchants are appropriately replenishing their inventory. 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 is temporarily stable, and the transaction performance is tepid. There are not many resources arriving in the Luoyang market this week. Jiyuan, Daye Special Steel and HBIS Stone Steel have relatively abundant supply on the market, and some traders have inventories of around 1,000 tons. Downstream terminals continue to have urgent needs for purchases, the market atmosphere is relatively deserted, and merchants are on the sidelines to avoid risks. Considering that the market price is affected by the price support of raw material costs and steel mills are highly willing to increase prices, it is expected that the price of bearing steel in Luoyang will be stable 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 the Dalian market remained stable, and the transaction volume was lower than the same period in previous years. 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 weak, merchants continue to purchase for urgent needs simultaneously, the market trading atmosphere is average, and the transaction volume does not meet expectations. In terms of inventory, due to the cold weather in the Northeast, it is difficult to improve demand release, and merchants are not willing to replenish inventory, and they mainly consume more early inventory. 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】

The price adjustment situation of major bearing steel mills across the country from December 8 to December 15 is as follows: A total of 1 steel mill released price adjustment information in this period, and a total of 1 price adjustment information was released. Next week, we should continue to pay attention to the impact of consumer demand and steel mill maintenance.

2. Outlook for next week

This week, the price of bearing steel was affected by the continued high price of raw materials and continued to run stable to strong. However, the increase this time was not large. Merchants had a strong wait-and-see sentiment and risk aversion. Most of the spot market quotations were stable, and the prices of scarce resources increased slightly. , but the transaction is average. In terms of inventory, compared with last week, the inventory decline this week is not significant, demand has not increased significantly, and merchants have appropriately replenished their inventory. Taken together, it is expected that the bearing steel market price may continue to strengthen next week.