Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of September is Weak and Stable

Weekly Summary: 2024 China Bearing Steel Market Trend in Second Week of September is Weak and Stable

1、 This week's review

【In terms of price】

This week, the price of bearing steel has been running weakly and steadily. As of today, the absolute price index of GCr15 is 4804 yuan/ton.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market is running weakly, 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 500 tons. The demand performance was poor in the first half of the week, with some market prices falling. In the second half of the week, the black market rebounded, and market prices were mostly consolidating. At present, there are many low-priced resources in the Liaocheng market. In order to ship more goods, traders choose to "negotiate on a single basis" without locking in prices. It will still take some time for demand to improve. Overall, it is expected that the price of bearing steel in the Liaocheng market will remain stable in the short term. Currently, Jiyuan Steel's GCr15 Φ 30-75 is priced at 4160 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 3870 yuan/ton.

The price of bearing steel in the Hangzhou market is running steadily, but the rate of inventory reduction is slow. The spot inventory in the Hangzhou market is slightly higher with the resources of Zhongtian Iron and Steel and Nanjing Iron and Steel. Currently, the decline rate of spot inventory is relatively slow, and most traders' inventory remains at around 500 tons. This week, the black market fluctuated strongly, and the market price of bearing steel stabilized and operated. In the situation where demand did not reach the expected level, traders were cautious in quoting prices. Coupled with the shortage of some resource specifications, merchants had a low willingness to replenish inventory in order to ensure capital flow, and most chose to transfer goods. Overall, it is expected that the price of bearing steel in the Hangzhou market will consolidate in the short term. As of press time, Zhongtian Steel's GCr15 Φ 40-140 is quoted at 4180 yuan/ton, and Daye Special Steel's GCr15 Φ 20-40 is quoted at 4550 yuan/ton.

The price of bearing steel in the Wuxi market is running weakly and steadily, 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 800 tons. From the perspective of inventory, the current rate of inventory reduction in society is slow, and some resources are experiencing shortages. However, due to weak demand and rational market sentiment, the willingness to replenish inventory is not strong. From the perspective of transactions, there is currently insufficient driving force for price increases, and there is no significant increase in downstream cargo volume. There is still pressure on merchants to ship, and most traders adjust prices irregularly according to changes in demand. Overall, it is expected that the price of bearing steel in the Wuxi market will remain stable in the short term and fluctuate within a certain range. 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 5500 yuan/ton.

The price of bearing steel in Dalian market is temporarily stable, and the market atmosphere is cold. 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, the market atmosphere is cold, and transactions are lower than the same period in previous years. In terms of inventory, merchants are generally cautious in their operations and prioritize replenishing inventory for urgent needs. Considering the recent weak fluctuations in raw material prices, it is expected that the price of bearing steel in Dalian will remain stable 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 is running steadily, and merchants are showing a strong wait-and-see attitude. 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 continue to make essential purchases, but the improvement in transactions is not significant, and the market atmosphere is average. Considering the limited space for demand release and the prevalence of low-priced resources in the market, profits are gradually narrowing. Overall, it is expected that the price of bearing steel in the Luoyang market will remain stable and weaken 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 September 6th to September 14th: In this period, a total of one steel mill released price adjustment information, with a cumulative total of one price adjustment information. 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 remained weak and stable. In the second half of the week, the black market surface turned red, and market confidence slightly recovered. However, there was no significant increase in demand, and the market price space was limited. It is expected that the bearing steel market price will remain stable next week, with range fluctuations.