Weekly Summary: 2023 China Bearing Steel Market Trend in Fourth Week of December is temporarily Stable

Weekly Summary: 2023 China Bearing Steel Market Trend in Fourth Week of December is temporarily Stable

1. Review of this week

【Price】

The mainstream market price of bearing steel nationwide is temporarily stable this week. 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 is temporarily stable, and the trading atmosphere is average. 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 demand is tepid. Downstream and terminals tend to compare prices for purchases. Merchants are in a wait-and-see mood and have a strong risk aversion. The quotations in the spot market are mostly stable. As the end of the month approaches, there is no obvious increase in demand, and the pressure on merchants to collect payments continues to increase. , and the enthusiasm for stocking up is not high. Taken together, it is expected that bearing steel prices in the Liaocheng market may run smoothly 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 are running smoothly, and downstream purchases continue to be in demand. Recently, the arrival of new resources in the Hangzhou market has slowed down, and the spot inventory is mainly resources from Zhongtian Steel, Nanjing Steel, and Daye Special Steel. In terms of the market, downstream and terminal procurement efforts are weak, transactions are average, some traders' inventories have reached a low level during the year, factory inventories have not changed much, spot prices are mostly stable, and prices of scarce specifications resources have slightly increased. Taken together, it is expected that bearing steel prices in the Hangzhou market may run smoothly 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 Wuxi market remained stable and the transaction volume was weak. 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 tons. Judging from market feedback, downstream purchasing enthusiasm is average. Near the end of the month, merchants are under pressure to ship. Most traders have shipped more goods to collect payment, and the bargaining space has increased. 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 remains stable, and there is a strong wait-and-see trend. The Luoyang market has limited arrival resources this week. 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. Both downstream terminals and traders continue to have rigid demand for purchases, the market atmosphere is cold, and merchants are operating more cautiously. In terms of sentiment, as demand is lower than the same period in previous years, businesses are on the sidelines and hedging. Taken together, 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 Dalian market has been running smoothly, and the transaction volume has not reached the expected level. 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 insufficient, merchants continue to have rigid demand, the market trading atmosphere is average, and transactions are relatively weak. In terms of inventory, considering that it is difficult to improve the demand release, 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 within a narrow range 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

Bearing steel prices are mainly stable this week, and prices of scarce specifications have increased slightly. Although the price of raw materials is at a high level, market demand has not seen a significant increase. Merchants are not enthusiastic about price expectations, and downstream purchases are still based on demand. 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 bearing steel market price may be temporarily stable next week.