Weekly Summary: 2024 China Bearing Steel Market Trend in Fourth Week of September Remains generally Stable

Weekly Summary: 2024 China Bearing Steel Market Trend in Fourth Week of September Remains generally Stable

1、 This week's review

【In terms of price】

This week, the price of bearing steel remained generally stable, with an absolute GCr15 price index of 4824 yuan/ton as of today.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market is generally stable, and merchants are cautious and watching. 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. With the recovery of the black market, market confidence is gradually improving. This week's transactions have improved compared to last week, and social inventory continues to remain in a destocking state. It is expected that the price of bearing steel in Liaocheng market may rise 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 3900 yuan/ton.

The price of bearing steel in the Hangzhou market is stable but slightly strong, 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. Currently, the decline rate of spot inventory is relatively slow, and most traders' inventory remains at around 500 tons. This week, the black market has been running strongly, coupled with the release of a new round of factory prices by steel mills. The market price of bearing steel is stable with some increase, but the market operation is more rational, mainly focusing on reducing inventory through sales. Overall, it is expected that the price of bearing steel in the Hangzhou market will continue to be strong 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 4570 yuan/ton.

The price of bearing steel in the Wuxi market is generally stable, 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 800 tons. From the perspective of inventory, the current market demand recovery speed is average, and business sentiment is cautious. Inventory is kept within a reasonable range, and the main operation is "fast in, fast out". From the perspective of transactions, with the influx of macro positive information, the increase in downstream cargo volume is not significant, and shipments are average. Overall, it is expected that the price of bearing steel in the Wuxi market will fluctuate 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 5470 yuan/ton.

The price of bearing steel in Dalian market is currently stable, and the market atmosphere is average. 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. The purchasing willingness of downstream terminals is weak, the market atmosphere is slightly cold, and the transaction volume is lower than the same period in previous years. The pressure for merchants to reduce inventory still exists. In terms of steel mills, Dongte Shares and Jianlong Beiman announced a unified increase of 100 yuan/ton for all bar, wire, and steel billets. Overall, it is expected that the price of bearing steel in Dalian will slightly rise 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 stable, but the transaction volume has not reached the expected level. 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, and there has been no significant improvement in transactions. Many merchants are adopting a cautious and wait-and-see attitude. In terms of steel mills, Hebei Iron and Steel Shigang announced a price adjustment policy, with all bar, wire, and steel billets uniformly increasing by 100 yuan/ton. Overall, it is expected that the price of bearing steel in the Luoyang market will steadily rise 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】

The price adjustment situation of major bearing steel mills in China from September 20th to September 27th is as follows: a total of 5 steel mills have released price adjustment information in this period, with a total of 5 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 remained generally stable. With the black futures market turning red and steel mills introducing a new round of price adjustment policies, market confidence is gradually improving. However, the downstream cargo volume has not increased significantly, and the market price increase space is limited. Overall, it is expected that the market price of bearing steel will rise slightly next week.