Weekly Summary: 2024 China Bearing Steel Market Trend in Third Week of May is Weak and Stable

Weekly Summary: 2024 China Bearing Steel Market Trend in Third Week of May is Weak and Stable

1、 Review of this week

[In terms of price]

This week, the mainstream market price of bearing steel in China remained weak and stable, with an average price of 5062.5 yuan/ton for round steel with a diameter of GCr15 and 30 in the five major markets nationwide.

[Main Market Overview]

The price of bearing steel in the Liaocheng market has slightly decreased, with average transactions. This week's inventory is relatively stable compared to last week. At present, the bearing steel spot in the Liaocheng market has more resources from Juneng, Jiyuan, and Qinggang, and the inventory of multiple traders is maintained at around 1500 tons. In terms of the market, due to the weak impact of sustained market demand and insufficient upward momentum in the price of bearing steel, coupled with a large number of low-priced resources in the Liaocheng market and weak shipping efforts for high priced resources, merchants mainly adopt a cautious and wait-and-see attitude in their operations. Overall, it is expected that the price of bearing steel in the Liaocheng market will remain stable in the short term. Currently, Jiyuan Steel's GCr15 diameter 30-75 is priced at 4600 yuan/ton, while Juneng Special Steel's GCr15 diameter 16-90 is priced at 4440 yuan/ton.

The price of bearing steel in the Hangzhou market has been weak and stable compared to last week, and merchants are cautious and have a strong wait-and-see attitude. The spot inventory in the Hangzhou market is relatively high with resources from Zhongtian Steel, Nanjing Steel, and Daye Special Steel, and the inventory level remains stable. At present, due to the impact of lower than expected demand, the speed of social inventory reduction is slow, and market prices are weak and stable. At present, there is more circulation of low-priced spot resources in the Hangzhou market, and there are also many low-priced transactions. Merchants are cautious and have a strong wait-and-see attitude, and their willingness to replenish inventory is weak. Overall, it is expected that the short-term price of bearing steel in the Hangzhou market will mainly focus on stable operation. As of the time of publication, Zhongtian Steel's GCr15 with a diameter of 40-140 is priced at 4590 yuan/ton, while Daye Special Steel's GCr15 with a diameter of 20-40 is priced at 4870 yuan/ton.

The price of bearing steel in the Wuxi market is weak and stable, and the willingness of merchants to replenish inventory is weak. The spot market in Wuxi has more 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 this week has not been significantly released compared to last week, and downstream procurement is still cautious. Currently, downstream procurement enthusiasm is not high, there are few new orders in the market, and there are not many market inquiry phone numbers. In order to promote transactions and ensure the flow of funds, merchant operations are mainly based on "single negotiation". Overall, it is expected that the price of bearing steel in the Wuxi market may fluctuate in the short term. As of publication, Zhongtian Steel's GCr15 with a diameter of 40-140 is priced at 4600 yuan/ton, while Xingcheng Special Steel's GCr15 with a diameter of 31-90 is priced at 5690 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 purchase cautiously, and the market maintains a situation of strong supply and weak demand. In practical operation, it is common for merchants to sell at low prices in order to promote transactions. Given that it is difficult to improve the demand in the spot market in the short term, it is expected that the price of Dalian bearing steel will stabilize and weaken 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 has remained stable, with transactions lower than the same period in previous years. 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, resulting in slow inventory consumption and difficulty in increasing spot market prices. Given the cautious wait-and-see sentiment of merchants, it is expected that the price of bearing steel in the Luoyang market may fluctuate narrowly 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 10th to May 17th, 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 been weak and stable, with strong wait-and-see sentiment among merchants. The overall inventory this week has not significantly decreased compared to last week. Currently, merchants are operating cautiously and have a low willingness to replenish inventory. In terms of supply, the regular specifications of spot supply remain stable, with some specifications experiencing shortages. However, merchants have weak willingness to replenish inventory, and some merchants choose to operate monotonically to reduce inventory risks. Overall, with no significant release of demand for bearing steel, the price increase still lacks some momentum, and it is expected that the bearing steel market price will continue to fluctuate next week.