Weekly Summary: 2024 China Bearing Steel Market Trend in Fifth Week of November is Running weakly and steadily

Weekly Summary: 2024 China Bearing Steel Market Trend in Fifth Week of November is Running weakly and steadily

Ⅰ 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 5005 yuan/ton.

【Overview of Major Markets】

The price of bearing steel in Liaocheng market is running weakly, and merchants are operating cautiously. At present, the Liaocheng market has more spot bearing steel resources from steel mills such as Juneng and Jiyuan, and multiple traders maintain inventory of over 500 tons. At present, the release of market demand is not obvious, the speed of shipment is slowing down, and market prices are under pressure and falling according to changes in demand. Coupled with the abundance of low-priced resources in the Liaocheng market, traders are still expanding their bargaining space in order to ship more, and it will take some time for demand to improve. In terms of inventory, social inventory continues to remain in a destocking state, with some resources being out of stock in small sizes. However, merchants have a low willingness to replenish inventory, so in order to ensure the capital chain, they choose to transfer goods for transactions. 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 4300 yuan/ton, while Juneng Special Steel's GCr15 Φ 16-90 is priced at 4000 yuan/ton.

The price of bearing steel in the Hangzhou market is currently stable, with average transactions. The spot inventory in the Hangzhou market is slightly higher with the resources of Zhongtian Steel and Nanjing Steel, and most traders maintain a stock of around 500 tons. In terms of the market, traders are cautious in quoting prices when demand does not meet expected levels. From the perspective of transactions, there is currently insufficient momentum for price increases, and there has been no significant increase in downstream purchasing volume, resulting in continued pressure on merchants to ship. Overall, it is expected that the price of bearing steel in the Hangzhou market will fluctuate narrowly in the short term. As of press time, Zhongtian Steel's GCr15 Φ 40-140 is quoted at 4340 yuan/ton, and Daye Special Steel's GCr15 Φ 20-40 is quoted at 4530 yuan/ton.

The price of bearing steel in the Wuxi market is running weakly, and the transaction atmosphere is not performing well. 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 remained relatively stable compared to last week, with downstream end enterprises continuing to have rigid demand for procurement. There are fewer new orders in the market, and the driving force for market price increases is limited. Most traders adjust prices irregularly according to changes in demand. Entering the off-season, merchants have made small restocking, and social inventory is at a normal level. Overall, it is expected that the price of bearing steel in the Wuxi market will remain stable and weaken in the short term. As of the time of writing, Zhongtian Steel's GCr15 Φ 40-140 is quoted at 4340 yuan/ton, and Xingcheng Special Steel's GCr15 Φ 31-90 is quoted at 5600 yuan/ton.

The price of bearing steel in Luoyang market is temporarily stable, and there is a strong wait-and-see sentiment among merchants. 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 terminals and traders continue to make essential purchases, resulting in low market activity and transactions falling short of expected levels. In terms of profit, merchants choose to negotiate prices on a single basis in order to ship more goods, and their profits are getting lower and lower. Considering the relatively stable prices of raw materials in the near future, it is expected that the price of bearing steel in Luoyang will remain largely stable next week. As of the time of writing, Jiyuan Steel's GCr15 Φ 6.5-23 is priced at 4550 yuan/ton, Daye Special Steel's GCr15 Φ 20-40 is priced at 4600 yuan/ton, and Hegang Stone Steel's GCr15 Φ 131-180 is priced at 4250 yuan/ton.

The price of bearing steel in Dalian market remains stable, but the transaction performance 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. As the weather gradually turns cold, there is little room for improvement in downstream terminal procurement, and the market atmosphere remains cold, with transactions not reaching the expected level. In terms of emotions, considering the slow release of demand in the short term and the fact that Northeast China has entered a cold winter, there is a clear wait-and-see attitude among merchants. Overall, it is expected that the price of bearing steel in the Dalian market will remain weak and stable next week. Currently, Bengang Special Steel's GCr15 Φ 81-130 is priced at 4250 yuan/ton, Dongte Stock's GCr15 Φ 86-180 is priced at 4250 yuan/ton, and Jianlong Beiman's GCr15 Φ 30-75 is priced at 4300 yuan/ton.

【Regarding steel mills】

From November 15th to November 29th, no steel mills have released price adjustment information for this period. We should continue to pay attention to the impact of consumer demand and steel mill maintenance next week.

Ⅱ Next week's outlook

This week, the market price of bearing steel remained weak and stable. At present, there is still a contradiction between supply and demand in the market, with stable downstream purchases and few new orders. Some merchants are using loose quotes to promote transactions in order to ship more. Overall, it is expected that the bearing steel market prices will continue to operate weakly and steadily next week.