Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of August Fluctuates and Declines

Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of August Fluctuates and Declines

1、 This week's review

【In terms of price】

This week, the price of bearing steel fluctuated downward, and as of today, the absolute price index of GCr15 is 4969 yuan/ton.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market continues to decline, and there is obvious sales pressure on merchants. 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, market prices continue to decline as demand weakens. Coupled with the abundance of low-priced resources in the Liaocheng market, businesses tend to be pessimistic and face significant sales pressure. In order to increase shipments, the price difference between bearing steel bars and wire rods is gradually widening. 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 4370 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 4100 yuan/ton.

The price of bearing steel in the Hangzhou market has fallen sharply, with average transactions. The spot inventory in the Hangzhou market is slightly higher with the resources of Zhongtian Iron and Steel and Nanjing Iron and Steel, and the decline rate of spot inventory is relatively slow. Most traders maintain their inventory at around 800 tons. In the off-season market, downstream orders have performed poorly, with on-demand procurement being the main focus. Currently, the rate of inventory reduction in social warehouses is slow, and some resource specifications are out of stock. However, traders are generally willing to replenish inventory, and in the short term, the ability to repair supply and demand contradictions is weak. It is expected that the price of bearing steel in the Hangzhou market will continue to operate weakly in the short term. As of press time, Zhongtian Steel's GCr15 Φ 40-140 is quoted at 4450 yuan/ton, and Daye Special Steel's GCr15 Φ 20-40 is quoted at 4800 yuan/ton.

The price of bearing steel in the Wuxi market continues to decline, and businesses are cautious in their operations. 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. The market demand during the off-season is still weak, the market performance is lukewarm, and the enthusiasm for terminal procurement is not high, maintaining on-demand procurement. Most traders adjust prices according to changes in demand, but the sales speed is slower than expected, and many negotiate prices on a case by case basis. 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 4450 yuan/ton, and Xingcheng Special Steel's GCr15 Φ 31-90 is quoted at 5640 yuan/ton.

The price of bearing steel in the Dalian market has slightly fallen, indicating weak demand. 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, and market transactions have not reached the expected level, making it difficult to make significant improvements in the short term. Considering the recent weakness of black futures and the fact that some terminal companies have already gone on vacation, the market demand is poor. Overall, it is expected that the price of bearing steel in Dalian will be weak next week. Currently, Bengang Special Steel's GCr15 Φ 81-130 is priced at 4400 yuan/ton, Dongte Stock's GCr15 Φ 86-180 is priced at 4450 yuan/ton, and Jianlong Beiman's GCr15 Φ 30-75 is priced at 4400 yuan/ton.

The price of bearing steel in Luoyang market is running weakly, and the sentiment of merchants is pessimistic. 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 are in urgent need of procurement, and some downstream terminals are on vacation, resulting in poor market demand performance. In terms of profits, the prices of raw materials are relatively low, and black futures have weakened one after another, resulting in increasingly thin profits in the spot market for bearing steel. Overall, it is expected that the price of bearing steel in the Luoyang market will continue to fluctuate and weaken next week. As of the time of writing, Jiyuan Steel's GCr15 Φ 6.5-23 is quoted at 4650 yuan/ton, Daye Special Steel's GCr15 Φ 20-40 is quoted at 4800 yuan/ton, and Hegang Stone Steel's GCr15 Φ 131-180 is quoted at 4400 yuan/ton.

【Regarding steel mills】

From August 2nd to August 9th, 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 continues to decline, and the guidance price of steel mills has been mainly adjusted downwards. Currently, the factory and social warehouses have slightly decreased. Although there are many low-priced resources on the market, the demand and transactions have not increased significantly, indicating that the short-term supply-demand contradiction of bearing steel still exists, and the market price recovery momentum is weak. Overall, it is expected that the market price of bearing steel will remain weakly stable next week.