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

Weekly Summary: 2024 China Bearing Steel Market Trend in Third 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 is weak and stable, and the sentiment of merchants is average. 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 and Qinggang, and the inventory of multiple traders is maintained at around 1000 tons. Entering the off-season, terminal procurement is cautious and there is not much stockpiling. Some scarce specifications choose to be restocked. At present, spot market transactions are less than expected, and demand is weak with weak price increases. Overall, it is expected that the price of bearing steel in the Liaocheng market will be mainly weak 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 weak and the transaction is average. 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. There is a high influx of low-priced resources in the market, and low-priced sales are common. Terminal procurement is still relatively cautious, and purchases are made on demand, with average transactions. Overall, it is expected that the price of bearing steel in the Hangzhou market will be mainly weak in the short term. As of the time of publication, Zhongtian Steel's GCr15 with a diameter of 40-140 is priced at 4580 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 consolidating, and low-priced resources are still available for trading. 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, and there was a clear lack of sentiment. The pace of procurement slowed down, and in addition, there were more low-priced resources, resulting in individual market prices falling due to the impact of demand. Overall, it is expected that the bearing steel prices in the Wuxi market will fluctuate and weaken in the short term. As of publication, Zhongtian Steel's GCr15 with a diameter of 40-140 is priced at 4580 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, but the market demand is poor. 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, the market trading atmosphere is cold, transactions are weakened, and merchants are cautious in their willingness to replenish inventory. Given that it is currently the traditional off-season and there is limited room for improvement in market demand in the short term, it is expected that the price of Dalian bearing steel may 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 has remained stable for the time being, and transactions have not reached 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, the purchasing enthusiasm of downstream terminal enterprises and traders in the market has been weak, and the high transaction performance in the market has been weak. Merchants have increased their willingness to sell low-priced resources with reluctance. Given the weak demand performance, which is insufficient to support the rise in spot market prices, it is expected that the bearing steel prices in Luoyang market will fluctuate and weaken 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 14th to June 21st, a total of 2 steel mills released price adjustment information, with a total of 2 price adjustments. Next week, we should continue to pay attention to consumer demand and the impact of steel mill maintenance.

2、 Outlook for next week

This week, the price of bearing steel in the market has fallen slightly, and market confidence is insufficient. Entering the off-season, downstream stocking has been affected by weakened demand, resulting in a clear lack of sentiment and a slowdown in downstream procurement pace. Overall, with weak demand, it is expected that the market price of bearing steel will fluctuate and weaken in the later stage.