Weekly Summary: 2024 China Bearing Steel Market Trend in Fourth Week of July Continues to Decline

Weekly Summary: 2024 China Bearing Steel Market Trend in Fourth Week of July Continues to Decline

1、 This week's review

【In terms of price】

This week, the price of bearing steel continues to decline, and as of today, the absolute price index of GCr15 is 5054.5 yuan/ton.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market continues to decline, with average transactions. At present, the Liaocheng market has more spot bearing steel resources from steel mills such as Juneng and Qinggang, and multiple traders maintain inventory of over 800 tons. At present, the terminal continues to make essential purchases, coupled with the influx of low-priced resources. Considering the release of demand, spot prices are following the downward trend. Some merchants are cautious and choose to quote on a per order basis without locking in prices. Overall, it is expected that the price of bearing steel in the Liaocheng market will remain weakly stable in the short term. Currently, Jiyuan Steel's GCr15 Φ 30-75 is priced at 4530 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 4270 yuan/ton.

The price of bearing steel in the Hangzhou market is running weakly, and downstream procurement is cautious. 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, the market effect is obvious during the off-season, with relatively light market transactions and average merchant shipment performance. Prices are significantly suppressed by demand, but downstream purchases are mainly for essential needs, and market prices are slowly declining. 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 quoted at 4580 yuan/ton, and Daye Special Steel's GCr15 Φ 20-40 is quoted at 4850 yuan/ton.

The price of bearing steel in the Wuxi market is running weakly, and the shipping speed is average. 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 1000 tons. At present, the enthusiasm for terminal procurement is not high, and there are not many bulk orders in the market. Coupled with the slow decline in spot inventory, most traders adjust prices according to changes in demand, but the sales speed is slower than expected. Overall, it is expected that the price of bearing steel in the Wuxi market will remain weakly stable 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 5670 yuan/ton.

The price of bearing steel in the Dalian market is fluctuating and weakening, resulting in poor demand performance. 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 is weak, market demand is difficult to improve, and transaction performance is not smooth. In terms of inventory, merchants generally adopt on-demand replenishment to reduce risks. Considering the recent decline in black futures and insufficient support for spot market prices, it is expected that the price of Dalian bearing steel will remain stable and weaken next week. Currently, Bengang Special Steel's GCr15 Φ 81-130 is priced at 4600 yuan/ton, Dongte Stock's GCr15 Φ 86-180 is priced at 4650 yuan/ton, and Jianlong Beiman's GCr15 Φ 30-75 is priced at 4600 yuan/ton.

The price of bearing steel in Luoyang market is running weakly and steadily, and merchants are operating cautiously. 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. Downstream terminal enterprises and traders are all in urgent need of procurement, and there is little room for improvement in market demand, resulting in weak performance in high-level transactions. In terms of emotions, given the current off-season, businesses tend to be cautious and adopt a wait-and-see attitude. Overall, it is expected that the price of bearing steel in the Luoyang market will fluctuate narrowly next week. As of the time of writing, Jiyuan Steel's GCr15 Φ 6.5-23 is quoted at 4750 yuan/ton, Daye Special Steel's GCr15 Φ 20-40 is quoted at 4980 yuan/ton, and Hegang Stone Steel's GCr15 Φ 131-180 is quoted at 4500 yuan/ton.

【Regarding steel mills】

From July 19th to July 26th, no steel mills have released any price adjustment information in 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 continues to decline, and businesses are cautious in their operations. The market price is significantly suppressed by demand, and the shipping speed has slowed down. It is expected that the market price of bearing steel will fluctuate narrowly next week.