Weekly Summary: 2024 China Bearing Steel Market Trend in Fourth Week of August Has Experienced a Wide Downward Trend

Weekly Summary: 2024 China Bearing Steel Market Trend in Fourth Week of August Has Experienced a Wide Downward Trend

1、 This week's review

【In terms of price】

This week, the price of bearing steel has fallen sharply, with the absolute price index of GCr15 as of today at 4914 yuan/ton.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market has fallen sharply, and the market sentiment is pessimistic. 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 500 tons. At present, market prices continue to decline due to demand, coupled with the abundance of low-priced resources in the Liaocheng market, leading to a pessimistic attitude among businesses and significant sales pressure. In order to increase shipments, traders have more and more bargaining space. The low-priced resources of bearing steel have fallen below 4000 yuan/ton, and it will take time for demand to improve. Overall, it is expected that the price of bearing steel in the Liaocheng market will continue to operate weakly in the short term. Currently, Jiyuan Steel's GCr15 Φ 30-75 is priced at 4210 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 3950 yuan/ton.

The price of bearing steel in the Hangzhou market continues to decline, 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 500 tons. In the situation where demand has not reached the expected level, traders are cautious in quoting prices and downstream purchases are mostly made on demand. Currently, the rate of inventory reduction in society is slow, and some resource specifications are out of stock. However, traders have a general willingness to replenish inventory and mostly choose to transfer goods. 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 quoted at 4270 yuan/ton, and Daye Special Steel's GCr15 Φ 20-40 is quoted at 4700 yuan/ton.

The price of bearing steel in the Wuxi market continues to decline, with poor demand performance. 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 800 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 continues to fall, and the market atmosphere 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 insufficient, overall transaction volume is weak, and the market performance is relatively sluggish. At present, the prices of raw materials are relatively low, and there is little room for improvement in demand in the short term, resulting in a downward trend in spot market prices. Overall, it is expected that the price of bearing steel in Dalian will fluctuate and weaken 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 4220 yuan/ton, and Jianlong Beiman's GCr15 Φ 30-75 is priced at 4270 yuan/ton.

The price of bearing steel in Luoyang market continues to decline, 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 continue to make essential purchases, coupled with some downstream terminals not starting work during holidays, resulting in a lack of significant improvement in market demand. In terms of profits, the prices of raw materials are relatively low, and the spot market prices of bearing steel are still declining, resulting in increasingly thin profits. Overall, it is expected that the price of bearing steel in the Luoyang market will remain weakly stable next week. As of the time of writing, Jiyuan Steel's GCr15 Φ 6.5-23 is quoted at 4470 yuan/ton, Daye Special Steel's GCr15 Φ 20-40 is quoted at 4720 yuan/ton, and Hegang Stone Steel's GCr15 Φ 131-180 is quoted at 4270 yuan/ton.

【Regarding steel mills】

Price adjustment situation of major bearing steel mills in China from August 16th to August 23rd: 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 market price of bearing steel continued to decline, and the ex factory price of steel mills also decreased synchronously. Currently, the rate of decline in factory and warehouse inventory is slow, and the market supply exceeds demand. In addition, there are many low-priced resources on the market, but the demand has not increased significantly. The supply-demand contradiction of bearing steel may continue, and it is expected that the market price of bearing steel will continue to weaken next week.