Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of June Have Declined individually

Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of June Have Declined individually

1、 Review of this week

[In terms of price]

This week, the mainstream market prices of bearing steel in China have fallen slightly, with the GCr15 absolute price index as of today at 5107.5 yuan/ton.

[Main Market Overview]

The price of bearing steel in the Liaocheng market has fallen slightly, and merchants have a low willingness to stock up. This week's inventory is relatively stable compared to last week, and the speed of inventory reduction in society is slower. 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. Entering the off-season, terminal procurement is cautious and there is not much hoarding. Considering that demand release is not as expected, market prices have fallen due to the impact of demand. Overall, it is expected that the price of bearing steel in the Liaocheng market will mainly consolidate 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 4370 yuan/ton.

The price of bearing steel in the Hangzhou market is currently stable, with average transactions. The inventory in the Hangzhou market this week is relatively stable compared to last week, with more spot inventory from Zhongtian Iron and Steel, Nanjing Iron and Steel, and Daye Special Steel. The inventory level remains stable, and steel mills are shipping normally, with little change in factory inventory. At present, there is no sign of improvement in the supply and demand fundamentals of the market, with many low-priced resources flooding into the market, and the speed of social inventory reduction is slow. Terminal procurement is still relatively cautious, and purchases are made on demand. Overall, it is expected that the price of bearing steel in the Hangzhou market will mainly consolidate in the short term. 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 consolidating, and merchants have a low willingness to stock up. 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, when demand did not reach the expected level, traders showed caution in their quotations and entered the off-season. Downstream stocking was affected by weakened demand, resulting in a clear lack of sentiment and a slowdown in procurement pace. In addition, there were more low-priced resources, and market prices remained stable. 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 temporarily stable, and 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 are cautious in procurement, and the market trading atmosphere is relatively cold. Merchants are operating cautiously at the same time. Considering the insufficient support for raw material costs and the traditional off-season period, there is not much room for improvement in market demand in the short term. It is expected that the price of Dalian bearing steel will fluctuate narrowly next week. Currently, Benxi Steel's special steel GCr15 with a diameter of 81-130 is priced at 4670 yuan/ton, Dongte Group's GCr15 with a diameter of 86-180 is priced at 4720 yuan/ton, and Jianlong Beiman's GCr15 with a diameter of 30-75 is priced at 4670 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. Recently, downstream terminal enterprises and traders have lacked purchasing enthusiasm, resulting in weak market transactions at high levels. In order to ship goods, merchants have continuously expanded the bargaining space for spot prices. Given the weak demand performance, it is expected that the price of bearing steel in the Luoyang market will remain stable next week. As of the time of publication, Jiyuan Steel's GCr15 with a diameter of 6.5-23 is priced at 4770 yuan/ton, Daye Special Steel's GCr15 with a diameter of 20-40 is priced at 5000 yuan/ton, and Hegang Shigang's GCr15 with a diameter of 131-180 is priced at 4520 yuan/ton.

[In terms of steel mills]

From June 7th to June 14th, 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 fallen slightly, and the market sentiment is not good. With the arrival of the traditional off-season, market demand has noticeably weakened, and most enterprises have slowed down their procurement pace to avoid future risks. However, they have hoarded more goods, and it is expected that the core of the market trend in the later stage will still revolve around demand. In the case of weak demand, market prices lack upward momentum in the later stage.