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

Weekly Summary: 2024 China Bearing Steel Market Trend in Fifth 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 experienced a wide downward trend, with the absolute price index of GCr15 as of today at 4814 yuan/ton.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market has fallen sharply, and the willingness of merchants to replenish inventory is weak. 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. In the first half of the week, the steel factory issued a new round of ex factory prices, which overall declined. In the second half of the week, the black market rebounded and market prices tended to stabilize. However, coupled with the abundance of low-priced resources in the Liaocheng market, traders are still expanding their bargaining space in order to ship more. The low-priced resources of bearing steel have fallen below 3900 yuan/ton, and it will take some time for demand to improve. 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 4150 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 3900 yuan/ton.

The price of bearing steel in the Hangzhou market continues to decline, with poor demand performance. 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, due to weak demand, traders have a weak willingness to replenish inventory. Overall, it is expected that the price of bearing steel in the Hangzhou market will remain weakly stable in the short term. As of press time, Zhongtian Steel's GCr15 Φ 40-140 is quoted at 4170 yuan/ton, and Daye Special Steel's GCr15 Φ 20-40 is quoted at 4600 yuan/ton.

The price of bearing steel in the Wuxi market continues to decline, and there is obvious sales pressure on merchants. 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. This week's market shipments have increased compared to last week, coupled with a recent rebound in the black market. Market sentiment is slowly recovering, and most traders are adjusting prices according to changes in demand. However, the sales speed is still relatively slow, and the willingness of merchants to replenish inventory at the end of the month is weak. 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 4170 yuan/ton, and Xingcheng Special Steel's GCr15 Φ 31-90 is quoted at 5550 yuan/ton.

The price of bearing steel in Dalian market continues to decline, and the market atmosphere is not performing well. 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, transaction performance is weak, and the market atmosphere is relatively cold. In terms of inventory, merchants are cautious in their willingness to replenish inventory and often choose to replenish as needed. In the recent stage, the fluctuation of raw material prices has become stronger, which has a supporting effect on the bearing steel market. It is expected that the price of bearing steel in Dalian may stabilize next week. Currently, Bengang Special Steel's GCr15 Φ 81-130 is priced at 4150 yuan/ton, Dongte Stock's GCr15 Φ 86-180 is priced at 4150 yuan/ton, and Jianlong Beiman's GCr15 Φ 30-75 is priced at 4200 yuan/ton.

The price of bearing steel in Luoyang market has slightly fallen, 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 in urgent need of procurement, with average market demand and no significant improvement in transactions. In terms of mentality, considering the fluctuation of raw material prices and the price adjustments made by some steel mills at the end of the month, businesses generally hold a cautious attitude. Overall, it is expected that the price of bearing steel in the Luoyang market will remain relatively stable next week. As of the time of writing, Jiyuan Steel's GCr15 Φ 6.5-23 is quoted at 4450 yuan/ton, Daye Special Steel's GCr15 Φ 20-40 is quoted at 4600 yuan/ton, and Hegang Stone Steel's GCr15 Φ 131-180 is quoted at 4150 yuan/ton.

【Regarding steel mills】

Price adjustment situation of major bearing steel mills in China from August 23rd to August 30th: A total of 6 steel mills have released price adjustment information in this period, with a total of 6 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 has fallen sharply, and the ex factory price of steel mills has also declined synchronously. In terms of the market, the release of demand is average, and market confidence is still insufficient, resulting in a lot of low-priced sales. However, the price reduction has not solved the actual demand problem. With the recovery of the black market, it is expected that the bearing steel market price will stabilize next week.