Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of May is temporarily Stable

Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of May is temporarily Stable

1、 Review of this week

[In terms of price]

This week, the mainstream market price of bearing steel in China has remained stable, with an average price of 5067.5 yuan/ton for round steel with a diameter of GCr15 and 30 in five major markets across the country.

[Main Market Overview]

The price of bearing steel in the Liaocheng market is mainly stable, and the sentiment of merchants is cautious. This week, the new arrivals of resources have slightly slowed down. At present, the spot bearing steel in the Liaocheng market is mainly from the resources of Juneng and Jiyuan steel mills, and the inventory of multiple traders is maintained at around 1500 tons. In terms of the market, the situation of terminal orders is relatively weak, and a cautious wait-and-see attitude is still the main approach. There are fewer bulk orders, and the inquiry phone number has weakened compared to last week. Trade merchants have average enthusiasm for quoting, and in terms of operation, they often choose to "exchange price for quantity" to promote sales. Overall, it is expected that the bearing steel prices in the Liaocheng market will fluctuate in the short term. Currently, Jiyuan Steel's GCr15 diameter 16-29.5 is priced at 4620 yuan/ton, while Juneng Special Steel's GCr15 diameter 16-90 is priced at 4450 yuan/ton.

The price of bearing steel in the Hangzhou market has remained stable compared to last week, with average transactions. The spot inventory in the Hangzhou market is mainly composed of resources from Zhongtian Steel, Nanjing Steel, and Daye Special Steel, and the inventory level remains stable. At present, due to lower than expected demand, the speed of inventory reduction in society is slow, and overall inventory is still high. Downstream restocking is needed, and merchants are cautious in their operations. In order to promote transactions, the negotiation space for bulk order prices has slightly increased. Overall, it is expected that the price of bearing steel in the Hangzhou market may fluctuate in the short term. As of the time of publication, Zhongtian Steel's GCr15 with a diameter of 40-140 is priced at 4620 yuan/ton, while Daye Special Steel's GCr15 with a diameter of 20-40 is priced at 4900 yuan/ton.

The price of bearing steel in the Wuxi market is temporarily stable, and downstream warehouses will be replenished as needed. The spot market in Wuxi is mainly composed of resources from Zhongtian Steel, Xingcheng Special Steel, and Benxi Steel, with most traders having a stock of around 1500 tons. The demand for bearing steel in the Wuxi market remained stable this week, with little difference compared to last week. Downstream procurement performance was cautious, with fewer new orders in the market and high trade inventories. There is still pressure to remove inventory. Overall, it is expected that the bearing steel prices in the Wuxi market will fluctuate and consolidate in the short term. As of the time of publication, Zhongtian Steel's GCr15 with a diameter of 40-140 reported 4630 yuan/ton, while Xingcheng Special Steel's GCr15 with a diameter of 31-90 reported 5720 yuan/ton.

The price of bearing steel in the Dalian market remains stable, and businesses are in a wait-and-see mood. In the Dalian market, Bengang, Dongte Co., Ltd., and Jianlong Beiman have abundant supply of goods, with large-scale traders holding around 3000 tons of inventory. Downstream terminals are cautious in procurement, and the market is temporarily continuing the situation of strong supply and weak demand. In practice, the phenomenon of selling at low prices is becoming increasingly common among businesses in order to promote transactions. Given the lack of significant improvement in demand in the spot market, it is expected that the price of Dalian bearing steel will remain stable next week. Currently, Benxi Steel's special steel GCr15 with a diameter of 81-130 is priced at 4700 yuan/ton, Dongte Group's GCr15 with a diameter of 86-180 is priced at 4750 yuan/ton, and Jianlong Beiman's GCr15 with a diameter of 30-75 is priced at 4700 yuan/ton.

The price of bearing steel in the Luoyang market is running steadily, and transactions are generally average. Recently, there has been a relatively abundant supply of goods for Jiyuan Steel, Daye Special Steel, and Hegang Stone Steel in the Luoyang market, with some traders holding around 1000 tons of inventory. This week's market feedback shows that downstream terminal enterprises and traders have continued to make essential purchases, and the consumption rate of spot inventory is slow. Given the difficulty in improving market demand at present, businesses are showing a cautious wait-and-see attitude. Overall, it is expected that the price of bearing steel in the Luoyang market will temporarily stabilize next week. As of the time of publication, Jiyuan Steel's GCr15 with a diameter of 6.5-23 is priced at 4800 yuan/ton, Daye Special Steel's GCr15 with a diameter of 20-40 is priced at 5050 yuan/ton, and Hegang Shigang's GCr15 with a diameter of 131-180 is priced at 4550 yuan/ton.

[In terms of steel mills]

From May 6th to May 10th, no steel mills have released any price adjustment information. We should continue to monitor consumer demand and the impact of steel mill maintenance next week.

2、 Outlook for next week

This week, the price of bearing steel in the market has stabilized, and there is significant sales pressure on merchants. The overall inventory this week has not decreased significantly compared to last week, and there is a backlog of inventory after May Day. In terms of demand, downstream enterprises are slowing down their procurement pace when their own orders are insufficient. At present, the sales pressure on merchants is obvious, and the quotations from traders are relatively chaotic. In terms of operation, they mainly choose fast in and out, reduce accumulated inventory to avoid risks, and recover funds. Overall, it is expected that the bearing steel market prices will fluctuate and consolidate next week.