Weekly Summary: 2023 China Bearing Steel Market Trend in Fifth Week of December is on the rise

Weekly Summary: 2023 China Bearing Steel Market Trend in Fifth Week of December is on the rise

I Review of this week

1 In terms of price

The mainstream market price of bearing steel in China has risen this week. Currently, there are 5 major markets in China, GCr15 Φ The average price of 30 round steel is 5181.5 yuan/ton.

2 Main Market Overview

The price of bearing steel in the Liaocheng market has increased slightly, and the market performance is lukewarm. The Liaocheng market has abundant supply of goods from Juneng and Jiyuan steel mills, with multiple traders maintaining a stock of around 1000 tons. At present, the market demand is lukewarm, and some traders have reached a lower level of inventory this year. Downstream and terminal buyers often compare prices for procurement, and merchants have a strong wait-and-see and risk aversion attitude. Although steel mills have successively introduced a new round of price adjustment policies, in order to increase shipments, the spot market quotes of traders are mostly stable, and prices of certain specifications have been raised. Overall, it is expected that the price of bearing steel in the Liaocheng market will temporarily stabilize in the short term. Jiyuan Steel GCr15 Φ 16-29.5 Quotation 4780 yuan/ton, Juneng Special Steel GCr15 Φ The quotation for 16-90 is 4650 yuan/ton.

Bearing steel prices in the Hangzhou market are stable and stronger, and businesses are properly replenished. Recently, the new resources to the Hangzhou market have slowed down, and the spot inventory is dominated by the resources of Zhongtian Steel, Nanjing Steel and Daye special steel. In terms of the market, downstream and terminal procurement is weak, affected by rising raw material prices, the cost price of bearing steel is raised, and the market price rises accordingly, due to the general market demand performance, the market price has not reached this round of increase. Near the end of the year, the market demand has not been significantly expanded, and businesses are properly replenished. Overall, it is expected that the bearing steel price in the short-term Hangzhou market will run smoothly. As of press release, Zhongtian Steel GCr15Φ40-140 is 4670 yuan/ton, and Daye Special Steel GCr15Φ20-40 is 5100 yuan/ton.

Wuxi market bearing steel prices increased slightly, the transaction is general. Wuxi market spot to Zhongtian steel, Xingcheng special steel, Bensteel resources, most traders are more than 1000 tons of inventory. From the market feedback point of view, the downstream continuation of on-demand procurement, near the end of the year, the merchant shipment pressure appeared, affected by the rise in raw material prices, the market price increased, but considering that the demand has not seen significant volume, some traders for shipment payment, bargaining space has increased. In terms of inventory, this week compared with last week, inventory has increased, and it is close to winter storage, and businesses are properly replenished. On the whole, it is expected that the bearing steel price in the Wuxi market will be mainly stable in the short term. As of press time, Zhongtian Steel GCr15Φ40-140 at 4,700 yuan/ton, Xingcheng Special Steel GCr15Φ31-90 at 5,820 yuan/ton.

Dalian market bearing steel prices rose slightly, the transaction performance is general. Dalian market Shangben Steel, Dongte shares and Jianlong Beiman supply is very rich, many traders storage in 3000-4000 tons. Downstream terminals and businesses have continued rigid demand, the market trading atmosphere is general, and transactions are weak. In terms of inventory, considering that the previous inventory is mainly consumed in the early stage, the willingness of merchants to replenish the inventory is slightly enhanced, and the social bank may show a slight growth trend. In terms of steel mills, due to the price of raw materials and the market situation of special steel, the price of Jianlong Beimu rose by 200 yuan/ton, and the price of East special shares rose by 100 yuan/ton. Overall, it is expected that the short-term bearing steel price will run in a narrow range. At present, Bentang special steel GCr15Φ81-130 is 4750 yuan/ton, East special shares GCr15Φ86-180 is 4900 yuan/ton, and Jianlong Beiman GCr15Φ30-75 is 4850 yuan/ton.

Luoyang market bearing steel prices rose slightly, businesses more wait-and-see risk-aversion. This week, Luoyang market to the storage resources increased slightly, the market with Jiyuan, Daye special steel and river steel steel supply is relatively rich, some traders in storage of about 1,000 tons. Downstream terminal procurement is cautious, traders continue rigid demand, the market atmosphere is cold, and transactions are light. In terms of sentiment, demand is still lower than the same period in previous years, and businesses are watching and hedging plots. Considering the increase in the cost of raw material prices, steel mills have announced price adjustment information, and it is expected that the price of bearing steel in the short term will be stable and stronger. As of press time, Jiyuan Steel GCr15Φ6.5-23 is 4900 yuan/ton, Daye Special Steel GCr15Φ20-40 is 5150 yuan/ton, and Hegang Steel GCr15Φ131-180 is 4750 yuan/ton.

II Next Week Outlook

This week, the price of bearing steel is stable and stronger. Due to the continuous rise in raw material prices, the cost of bearing steel has increased, steel mills have introduced a new round of price adjustment policies, and the market price has been raised, but in view of the general performance of downstream demand, the market price has not reached this round of price increase. Near the end of the year, downstream procurement is still on demand, businesses in order to collect more shipments, bargaining space has increased. In terms of inventory, this week compared with last week, inventory has increased, and merchants have replenished inventory appropriately. On the whole, it is expected that the bearing steel market price will be temporarily stable next week.