Overview of China Bearing Steel Market in 2005
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Dec 21,2005
Chinese bearing steel market has undergone ups and downs in the whole 2005. At first stage, bearing steel's price increased furiously to 5000yuan/ton as a result of the increasing price of raw materials. Driven by profit, mills began to expand their steel output so that steel supplies greatly exceed the demand, which caused the nationwide depression in China's steel market, of cause bearing steel was involved in. At that time price of bearing steel declined rapidly from 5000yuan/ton to less than 4000yuan/ton.
In order to relax the market pressure, the leading mills reached an agreement to shrink their steel output. By the end of 2005, such measure did take effect to gradually stabilize the steel price. However, it's a fact in China that low-end steel products are over-demand and fierce price competition will continue in 2006's steel market. What we should do is to find some effective measures to solve the problem essentially.
1. Great development in bearing steel industry from 2000-2005
a. Output & Productivity
In the past 5 years, output of bearing steel increased by 21.30% every year. From 2002 to 2003, the output increasing rate even reached 36.23%, putting China's total output of bearing steel ranked first in the world.
In 2000, about 1500 domestic bearing enterprises produced 2billion pcs bearings by using 0.76 million tons bearing steel;
In 2001, bearing steel output hit 0.973million tons, exceeding the 0.8million tons' demand that year;
In 2002, bearing steel output hit 1.12million tons, exceeding the 0.92million tons' demand that year;
In 2003, bearing steel output hit 1.469million tons, exceeding the 1million tons' demand```
In 2004, bearing steel output hit 1.82million tons, exceeding the 1.5million tons' demand```
So we can forecast that in 2005, bearing steel output will hit 2million tons.
In 2005, Chinese bearing industry make great progress by technical and equipment upgrading. Shanghai Baosteel, Xingcheng Steel, the leading mills in China, and other mills had developed new bearing steel products with high quality, such as bearing steel for low-noise high-speed bearings etc. The new products not only were appreciated by domestic customers but also by foreign enterprises like Minebea etc.
b. Technology
Nowaday, quality has become the soul of every thing. To bearing steel, it's the same. Higher quality is based on advanced technologies. In the past 2005, China had introduced various international advanced technologies and production facilities to improve the quality of our bearing steels. Currently, the oxygen content of our bearing steels has been contained to 10ppm which is also a little lower than the world highest level of 5ppm.
2. Enterprises
Based on the output in first 9 months 2005, the top three enterprises are Dongbei Special Steel Group(DSS), Xingcheng Special Steel(XSS), Zhengzhou Yongtong Special Steel(ZYSS). Bearing steel output of the 3 enterprises account for 60percent of the national total.
3. Import & Export
In last year, export value in major mills has increased by 113% and the rate became lower in the second half for the adjustment in export refund policies.
In the first 3 quarters 2005, total bearing steel export hit 36,705 tons, nearly fourfold of the export in the same period last year. Predictively, the annual export will reach 45,000 tons. Among all the mills, XSS played an important role in the export. Export of XSS has taken up 70% of the national total.
Concerning import, we mainly import steels for auto bearings, high-speed railway bearings and special bearings. Import also increased compared with 2004. What cause this is the technical and quality gap between ourselves and foreign enterprises.
4. Problem & Future
In China, the problem in bearing steel industry is the same as in bearing industry. Producing what we can produce heavily; making little progress in new products developments. To change the situation, we should gradually carry out the following measures:
1> Pay more attention to the new products developments and quality improvemnt.
2> Make some significant change to the current products mix.
3> Optimize producing technologies and procedures.
4> Encourage export.
In short, we should realize the shift from quantity-oriented increase to quality-oriented increase as soon as possible.
(cbcc)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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