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Bearing steel market prices rose slightly in August

From:SINO BEARINGS2022-08-16


I. Domestic bearing steel output
 
(I) Bearing steel production from January to June 2022: steel production increased year-on-year and crude steel production decreased year-on-year
 
According to the statistics of the Special Steel Association, from January to June 2022, the crude steel output of bearing steel of major premium special steel enterprises in China was 2,506,700 tons, down 0.67% compared with the same period last year; From January to June 2022, the production of bearing steel of China's main premium steel enterprises was 2.20 million tons, up 2.17% compared with the same period last year

Second, the domestic bearing steel market performance
 
In July, the overall market price of bearing steel fell sharply, and the performance of downstream demand is still weak. At present, the transfer of steel mill inventory to social inventory has been reflected, the mainstream market bearing steel inventory shows a rising trend, some bearing steel pipe factory inventory pressure highlights. Near stage market in the off-season atmosphere, business confidence is obviously insufficient, market demand has been in a state of inhibition. With the reduction of the severity of the epidemic nationwide, the operating rate of downstream manufacturing enterprises is improved, and the overall demand is expected to increase month-on-month. The market price of bearing steel is expected to stabilize and slightly rise in August

3. Relevant market information
 
(I) Raw material price:
 
July iron ore prices fell before rising, the Mysteel62% Australian powder index is now at $114.5 / dry ton. In the middle and early ten days, the downstream finished lumber demand recovered slowly, the inventory pressure increased, the upstream steel production scope was expanding, the demand continued to weaken, and the price fell significantly. In the latter part of the year, after reducing production to alleviate the pressure on steel mill stock, downstream demand also appeared a small warming. At present, the main contradiction in the market operation is still concentrated in the demand side. It is expected that the price operation in August may show a trend of high before and low after. The domestic scrap market fell across the board, the overall performance is poor, the average price at the end of the month 2404 yuan/ton. Steel mill finished material inventory backlog, capital turnover is difficult to alleviate. Although the loss of electric arc furnace steel plant has been alleviated, but there are still some steel overhaul, continue to reduce production or even stop production. Blast furnace steel mills are also under pressure production, scrap demand is low, leading to a sharp drop in scrap prices. A variety of factors are still affected, considering the gradual recovery of the market, it is expected that the scrap market in August under pressure operation, shock rise; The market price of high carbon ferrochrome is weak, and the price at the end of the month is 8456 yuan/ton. Downstream steel mills consumption reduction, the demand for ferrochrome continues to be low, some steel mills in July and August reduced or do not purchase, ferrochrome oversupply situation aggravated, August output will continue to decline. At present, the main problem of ferrochrome is still the weak demand performance, the impact of cost factors is relatively limited, the supply and demand situation is difficult to change in the short term, it is expected that the ferrochrome market will remain weak operation