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

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

1、 This week's review

【In terms of price】

This week, the mainstream market price of bearing steel in China has been running weakly and steadily. As of today, the absolute price index of GCr15 is 5107.5 yuan/ton.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market is weak and stable, and the willingness of merchants to replenish inventory is weak. This week's inventory has decreased less compared to last week. Currently, the Liaocheng market has more spot bearing steel resources from Juneng and Qinggang, and multiple traders maintain inventory at around 1000 tons. At present, terminal procurement is cautious. As the end of the month approaches, considering the average demand and the weakened willingness of merchants to replenish inventory, some scarce specifications have chosen to be adjusted. Therefore, it appears that demand is weak and price increases are weak. Overall, it is expected that the price of bearing steel in the Liaocheng market will fluctuate and weaken in the short term. Currently, Jiyuan Steel's GCr15 Φ 30-75 is priced at 4600 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 4370 yuan/ton.

The price of bearing steel in the Hangzhou market is running weakly and steadily, with average transactions. The spot inventory in the Hangzhou market is relatively abundant with resources from Zhongtian Iron and Steel, Nanjing Iron and Steel, and Daye Special Steel. The inventory levels remain stable, and steel mills are shipping normally with little change in factory inventory. At present, downstream stocking is affected by weakened demand, and there is a clear lack of emotion. The pace of downstream procurement has slowed down, and there are many low-priced resources in the Hangzhou market, which puts great pressure on price competition. Overall, it is expected that the price of bearing steel in the Hangzhou market will remain weak in the short term. As of press time, Zhongtian Steel's GCr15 Φ 40-140 is priced at 4580 yuan/ton, while Daye Special Steel's GCr15 Φ 20-40 is priced at 4870 yuan/ton.

The price of bearing steel in the Wuxi market is weak and consolidating, with average transactions. The spot market in Wuxi has more resources from Zhongtian Steel, Xingcheng Special Steel, and Benxi Iron and Steel, with most traders having inventory of around 1500 tons. In terms of the market, when demand did not reach the expected level, traders were cautious in quoting prices, and market transactions were mainly driven by essential needs. Downstream stocking slowed down as demand weakened, resulting in a slower pace of procurement. Overall, it is expected that the price of bearing steel in the Wuxi market will fluctuate and weaken in the short term. As of the time of writing, Zhongtian Steel's GCr15 Φ 40-140 is quoted at 4580 yuan/ton, and Xingcheng Special Steel's GCr15 Φ 31-90 is quoted at 5690 yuan/ton.

The price of bearing steel in Dalian market is stable but gradually weakening, and the market demand is weak. In the Dalian market, Benxi Iron and Steel, Dongte Shares, and Jianlong Beiman have abundant sources of goods, with large-scale traders having inventory of around 3000 tons. This week's market feedback shows that downstream terminal procurement enthusiasm is weak, the market trading atmosphere is poor, transactions have significantly weakened, and merchants' willingness to replenish inventory has decreased. Considering that it is currently in the traditional off-season period and the market demand improvement space is limited in the short term, it is expected that the price of bearing steel in Dalian will show a narrow range of fluctuations next week. Currently, Bengang Special Steel's GCr15 Φ 81-130 is priced at 4670 yuan/ton, Dongte Stock's GCr15 Φ 86-180 is priced at 4720 yuan/ton, and Jianlong Beiman's GCr15 Φ 30-75 is priced at 4670 yuan/ton.

The price of bearing steel in Luoyang market is running steadily, with transactions lower than the same period in previous years. Recently, there has been ample supply of Jiyuan Steel, Daye Special Steel, and Hegang Stone Steel in the Luoyang market, with some traders holding around 1000 tons of inventory. This week, downstream terminal enterprises in the market continued to make essential purchases, and the enthusiasm of traders for procurement also weakened. High level transactions in the market were weak, and the market atmosphere was relatively quiet. Given the weak demand performance during the off-season, which is insufficient to support the rise in spot market prices, it is expected that the price of bearing steel in the Luoyang market will fluctuate and weaken next week. As of the time of writing, Jiyuan Steel's GCr15 Φ 6.5-23 is quoted at 4770 yuan/ton, Daye Special Steel's GCr15 Φ 20-40 is quoted at 5000 yuan/ton, and Hegang Stone Steel's GCr15 Φ 131-180 is quoted at 4520 yuan/ton.

【Regarding steel mills】

From June 21st to June 28th, no steel mills have released price adjustment information for this period. We should continue to pay attention to the impact of consumer demand and steel mill maintenance next week.

2、 Next week's outlook

This week, the market price of bearing steel remained weak and stable, with average transaction performance. At present, in the context of insufficient market demand, there is a common phenomenon of low price competition, and terminal procurement is still cautious, resulting in a decrease in orders. It is expected that the market price of bearing steel will fluctuate and weaken in the later stage.