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

Weekly Summary: 2024 China Bearing Steel Market Trend in Third 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 4914 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, leading to a pessimistic attitude among businesses and significant sales pressure. Traders have increasing bargaining space in order to ship more goods. Overall, it is expected that the price of bearing steel in the Liaocheng market will remain weak in the short term. Currently, Jiyuan Steel's GCr15 Φ 30-75 is priced at 4290 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 4040 yuan/ton.

The price of bearing steel in the Hangzhou market continues to decline, with weak 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. Downstream orders in the off-season market have performed poorly, with on-demand procurement being the main focus. Currently, the rate of inventory reduction in society is slow, and some resource specifications are out of stock. However, traders are generally willing to replenish inventory. Overall, it is expected that the price of bearing steel in the Hangzhou market will continue to be weak in the short term. As of press time, Zhongtian Steel's GCr15 Φ 40-140 is priced at 4370 yuan/ton, while Daye Special Steel's GCr15 Φ 20-40 is priced at 4750 yuan/ton.

The price of bearing steel in the Wuxi market is running weakly, and merchants 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 to maintain on-demand procurement. Most traders adjust prices according to changes in demand, but the sales speed is not as expected, so they choose to 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 4370 yuan/ton, and Xingcheng Special Steel's GCr15 Φ 31-90 is quoted at 5590 yuan/ton.

The price of bearing steel in Dalian market has slightly fallen, and the demand performance is poor. 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 insufficient, and market transaction performance is weak, making it difficult to make significant improvements in the short term. Considering the recent weakening of black futures volatility and the fact that some terminal companies have already gone on vacation, the market atmosphere is cold. 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 4300 yuan/ton, Dongte Stock's GCr15 Φ 86-180 is priced at 4300 yuan/ton, and Jianlong Beiman's GCr15 Φ 30-75 is priced at 4350 yuan/ton.

The price of bearing steel in Luoyang market is fluctuating and weakening, and the sentiment of merchants is slightly 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 cautious in their procurement, resulting in weak market demand. In terms of profits, the prices of raw materials and black futures continue to weaken synchronously, and the profits in the spot market of bearing steel are getting lower and lower. Overall, it is expected that the price of bearing steel in the Luoyang market will remain stable next week, with a slight decline as a supplement. As of the time of writing, Jiyuan Steel's GCr15 Φ 6.5-23 is quoted at 4600 yuan/ton, Daye Special Steel's GCr15 Φ 20-40 is quoted at 4750 yuan/ton, and Hegang Stone Steel's GCr15 Φ 131-180 is quoted at 4350 yuan/ton.

【Regarding steel mills】

Price adjustment situation of major bearing steel mills in China from August 9th to August 16th: In this period, a total of 2 steel mills released price adjustment information, with a total of 2 price adjustment information released. Next week, we should continue to pay attention to the impact of consumer demand and steel mill maintenance.

2、 Next week's outlook

This week, the overall market price of bearing steel has fallen, and the ex factory price of steel mills has also declined synchronously. Currently, the rate of decline in factory and warehouse inventory is slow. There are many low-priced resources on the market, but the demand is unlikely to increase significantly in the short term, indicating that the supply-demand contradiction of bearing steel continues. Overall, it is expected that the market price of bearing steel will continue to operate weakly next week.