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

Weekly Summary: 2024 China Bearing Steel Market Trend in Fifth 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 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 is temporarily stable, with poor transactions at high levels. 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, terminal procurement is still cautious, and spot market prices have not changed much in the absence of expected demand levels. Merchants, in order to facilitate transactions, mainly focus on selling inventory and receiving payments, but lack the driving force for the rise of spot prices in the market. Overall, it is expected that the price of bearing steel in the Liaocheng market will continue to operate 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 currently stable, with poor transactions at high levels. 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, although steel mills have introduced a new round of price adjustment policies, considering the current weak demand situation, spot prices lack the driving force to rise, and the market is mostly dominated by transactions on demand, with weak willingness from merchants to replenish inventory. 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 is temporarily stable, and transactions at high levels are not smooth. 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, traders have shown caution in their quotations as demand has not reached the expected level. At present, the market prices have not changed much. Although steel mills have gradually raised their factory prices, there is more competition for low-priced resources in the Wuxi market, and spot prices have stabilized this week. Overall, it is expected that the price of bearing steel in the Wuxi market will continue to remain stable 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 is stable and the market demand is relatively weak. 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. Although steel mills have raised their factory prices, the spot market transaction prices have not yet followed suit. In order to promote transactions, it is common for businesses to sell at low prices. Given the limited room for improvement in spot market demand in the short term, it is expected that the price of Dalian bearing steel will temporarily stabilize 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 remained stable, and transactions did not reach the expected level. 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 continue to make essential purchases, resulting in a relatively cold trading atmosphere and insufficient support for the rise in 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 will remain stable next week, with narrow fluctuations as a supplement. 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]

The price adjustment situation of major bearing steel mills in China from May 24th to May 31st is as follows: a total of 4 steel mills have released price adjustment information in this period, with a total of 4 price adjustment information released. Next week, we should continue to pay attention to consumer demand and the impact of steel mill maintenance.

In addition, 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

The price of bearing steel in the market is temporarily stable this week, and the release of market demand is slow. In terms of supply, the regular specifications of spot supply remain stable, and some specifications are in short supply. However, merchants are cautious in their operations, and their willingness to replenish inventory is weak. They choose to follow a monotonous approach in their operations. In terms of the market, downstream enterprises have slowed down their procurement pace when their own orders are insufficient, resulting in average overall market demand. In summary, it is expected that the bearing steel market prices will fluctuate next week.