Chinese bearing steel market sluggish in spite of a price increase
2012-11-27 17:45:30 [Print]
BEIJING (Asian Metal) 8 Nov 12 - Although steel mills lifted prices of bearing steel recently and market traders followed suit, the current domestic market remains dull without strong demand. Observers predict that prices will be firm in following one or two weeks.
A special steel trader in Shanghai reported that the current price of Gcr15 Φ50-60mm from Baosteel is RMB7,000/t (Annealed and VAT included), unchanged compared with that of last working day but RMB100/t higher than that of late October.
The source said because Baosteel keeps ex-works price firm and many other mills raised prices recently, market traders had to follow suit. However, the demand from downstream buyers is as soft as before and his sales volume of bearing steel is only around 100t on Wednesday while the regular level in the high season is 200-300tpd. Nevertheless, steel mills are facing losses, so they are unlikely to lower prices in a short term and the market price will be firm.
Another special steel dealer in Hangzhou, Zhejiang Province confirmed the higher price and the slow market. Quoting RMB4,300/t (Unannealed and VAT included) from Huai’an Steel, the source said the price is RMB50/t higher compared with that of last week.
The source also disclosed that because mills could not get profit from the production of special steel, most of them turn to rebar, which leads to a short supply. Thus, mills lifted prices and it pushed the market price higher. However, there are no more customers placing orders and he worried that his sales volume in November will be hard to achieve the target level of 50,000t. About the market in the near future, he is somehow confident considering there will be some positive policies from the new leadership after the 18th National Congress of Communist Party of China.
A special steel trader in Shanghai reported that the current price of Gcr15 Φ50-60mm from Baosteel is RMB7,000/t (Annealed and VAT included), unchanged compared with that of last working day but RMB100/t higher than that of late October.
The source said because Baosteel keeps ex-works price firm and many other mills raised prices recently, market traders had to follow suit. However, the demand from downstream buyers is as soft as before and his sales volume of bearing steel is only around 100t on Wednesday while the regular level in the high season is 200-300tpd. Nevertheless, steel mills are facing losses, so they are unlikely to lower prices in a short term and the market price will be firm.
Another special steel dealer in Hangzhou, Zhejiang Province confirmed the higher price and the slow market. Quoting RMB4,300/t (Unannealed and VAT included) from Huai’an Steel, the source said the price is RMB50/t higher compared with that of last week.
The source also disclosed that because mills could not get profit from the production of special steel, most of them turn to rebar, which leads to a short supply. Thus, mills lifted prices and it pushed the market price higher. However, there are no more customers placing orders and he worried that his sales volume in November will be hard to achieve the target level of 50,000t. About the market in the near future, he is somehow confident considering there will be some positive policies from the new leadership after the 18th National Congress of Communist Party of China.
