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

Weekly Summary: 2024 China Bearing Steel Market Trend in Fourth 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 has been weak and stable, with an average price of 5062.5 yuan/ton for round steel with a diameter of GCr15 and a diameter of 30 in five major markets across the country.

[Main Market Overview]

The price of bearing steel in the Liaocheng market is weak and stable, and terminal procurement is cautious. 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. At present, terminals are still cautious in purchasing, and the upward momentum of bearing steel market prices is insufficient. The situation of strong supply and weak demand in the market continues, and merchants are selling at low prices to promote transactions. Overall, it is expected that the bearing steel prices in the Liaocheng market will continue to operate weakly and steadily 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 is weak and stable, with weak transactions. 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. In terms of the market, downstream terminals and trading enterprises continue to make essential purchases, and the speed of social inventory reduction is slow. It is difficult for spot market prices to rise. In order to ship more, there is also more competition in the Hangzhou market at low prices, and merchants mainly focus on "single item negotiation". Overall, it is expected that the short-term price of bearing steel in the Hangzhou market will mainly fluctuate. As of the time of publication, Zhongtian Steel's GCr15 with a diameter of 40-140 is priced at 4600 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 has remained stable compared to last week, and merchants are cautious and cautious. 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. In terms of the market, even though demand has not reached the expected level, terminal procurement remains cautious and spot market prices have not changed much. However, in practical operation, merchants often sell at low prices in order to promote transactions and ensure the flow of funds. 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. In terms of the market, trading volume is light, and market prices are significantly suppressed by demand. Traders are showing caution in their quotations. Considering the insufficient cost support, 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. The trading atmosphere in the market has been poor this week, with spot prices following the market trend. Downstream terminals and trading enterprises have continued to make essential purchases, resulting in relatively weak market transactions and slow inventory consumption. The trading situation is slightly pessimistic. Overall, it is expected that the price of bearing steel in the Luoyang market will 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]

Starting from late May, Nangang will conduct maintenance on a large bar line for a period of 10 days, which is expected to affect the production of 30000 tons of bar materials with a diameter of 50-200mm, including an estimated impact on 2000 tons of bearing steel; In addition, due to furnace maintenance in June and July, there is a shortage of molten iron, which is expected to affect the production of round steel by 30000 to 40000 tons per month.

2、 Outlook for next week

This week, the price of bearing steel in the market remained weak and stable, and there was no significant release in demand compared to last week, resulting in weaker transactions. In terms of supply, the regular specifications of spot supply remain stable, with some specifications experiencing shortages. However, merchants are cautious in their operations and have weak willingness to replenish inventory. They choose to follow a monotonous approach in their operations, and in some cases, they may offer discounts to facilitate transactions. Overall, with no significant release of demand for bearing steel, the price has not changed much, and it is expected that the bearing steel market price will fluctuate next week.