Weekly Review of Bearing Steel Market in China ( 22nd, Dec to 29th, Dec，2017) I.Macro News

Weekly Review of Bearing Steel Market in China ( 22nd, Dec to 29th, Dec，2017)

I.Macro News

China Market News

Steady monetary policy remained neutral

The central economic work conference held recently suggested that prudent monetary policy should remain neutral, maintain the total floodgate of the money supply, and keep a reasonable increasing in the size of monetary credit and social financing. Experts said that economic growth may slow moderately next year. Regulators will be flexible use of the monetary policy tools of various terms to maintain the balance between the lower leverage and liquidity basically stable. Targeted RRR cuts implemented in January next year will greatly improve the liquidity situation in the first quarter.

From January to November 2017, profits of industrial enterprises in China increased by 21.9%. From January to November, the total profits of industrial enterprises reached 6.87501 trillion yuan, an increase of 21.9% over the same period of last year, a deceleration of 1.4 percentage points from January to October.

International News

The United States taxes Vietnam and China's exports were hit

Regarding the U.S. Department of Corrections preliminary ruling for high double-tax rebates on steel products imported from Vietnam, the Vietnam Steel Association (VSA) and Vietnam's Ministry of Industry and Trade have responded by closely following developments in the case and will follow the WTO rules Take the necessary measures to protect local steel manufacturers. Australia lifted some anti-dumping measures against hot-rolled coil and sheet metal in Asia. A report this week from the Australian anti-dumping committee shows that anti-dumping measures against hot rolled coils from Malaysia, South Korea and Japan will be withdrawn. According to the investigation, the committee decided to take anti-dumping measures against hot-rolled coils produced in Taiwan only. "The censorship of anti-dumping measures will take into account whether there is any change in the variables and these anti-dumping measures will have an impact on Taiwanese exporters," said Dale Seymour, the commission's chairman.

II.Raw material and ferroalloy market

The price of Raw material and ferroalloy market

This week, among the five categories of raw materials, the prices of coke and scrap steel rose ; that of domestic ore and pig iron remained flat. The main ferroalloy high chromium, ferromolybdenum, ferrovanadium and high-manganese rose. Electrolytic nickel and silica declined. Tungsten iron remained flat.

2.1 Price of five raw materials(unit: RMB yuan/ton )

Form 1: Price Comparison of Five Raw Materials by Week and by Month

Remark: the data of imported ore come from 63% of Indian ore in Tianjin ports; the data of domestic ore is from 66% of Hebei iron power; the data of pig iron is from the average price including tax of pig iron for steel making ;The data of scrap steel is from the average price including tax of of scrap steel of 6-8mm thick; the data of coke from the ex-factory price (including tax) of the secondary metallurgical coke of Tangshan. 

2.2 Prices of Ferroalloy (unit: RMB yuan/ton )

Form 2: Price Comparison of Ferroalloy by Week and by Month

III.Price Index Trend of China Special Steel

1. Up to 8nd December , the price index of special steel reached to 134, 3.2% down over last week and up 3.43% over last month.

2. Synthetic index of carbon steel and gear steel , bearing steel, spring steel and die steel keep increasing.

3. According to the trend of price index, the price of special steel will weak next week.

Remark:

1. Mysteel-sspic（Mysteel-Special Steel Price Index of china is a set of price index of special steel launched by Mysteel.com representing the consumption and operation of special steel market.

2. The seven categories of steel adapted by Synthetic index are based on 45 # (Φ 20) carbon structural steel, alloy structural steel 40 Cr (Φ 20), 20 CrMnTi gear steel, spring steel 60 Si2Mn (Φ 50), bearing steel GCr15 (Φ 50), 4 cr5mosiv1 alloy tool steel (H13), stainless steel 0 Cr18Ni9 (304/2B 2. 0 mm plate).

3.The price come from the major consuming market of superior special steel, including Shanghai, Hangzhou, Changsha, Wuhan, Chongqing, Wuxi, Changzhou, Chengdu, Xi’an, Shenyang etc.

4.The index herein means weighted index , with the weight of each category made on the basis of its percentage of the total consumption of special steel over one year. The price adapted is the one of of major inventory markets by week.

5.The base date of the index is January 1, 2007 , with its value at 100 points.

6.According to the weight of latest categories in 2010, data in each day will have a deviation of 2-3 point. To ensure the continuity of the data, the index is not adjusted and the index based on the new weight is only for tracking prices.

IV. Ex-factory Price Tracking of Superior Special Steel Manufacturers

This week, we tracked 83 superior special steel manufacturers, of which 15 mills released ex-factory pricing information, 10 mills declined their ex-factory prices ,5 mills remained flat. The ex-factory adjustment of price only involved products such as a few bars and optimal wire rods, with the declining of 50-200yuan/ton.

V. Price of Superior Special Steel

1.Price Tracking of Structural Steel Bar in a Week(unit: RMB yuan/ ton)

2. Price Tracking of Superior Wire Rod in a Week(unit: RMB yuan/ ton)

3. Price Tracking of Superior Plate and Strip in a Week(unit: RMB yuan/ ton)

4. Price Tracking of Other Special Steel in a Week(unit: RMB yuan/ ton)