Weekly Summary:2021 China Bearing Steel Market Trend in First Week of July Will down 0.14%

1. The price of mainstream varieties of excellent special steel

This week, the prices of mainstream premium special steel products fluctuated. Among them, 45# closed at 5343 yuan/ton, down 8 yuan/ton from last week, 40Cr closed at 5578 yuan/ton, down 18 yuan/ton from last week, and 20CrMnTi closed at 5721 yuan/ton. Last week, it fell 38 yuan/ton, and CrMo closed at 6029 yuan/ton, down 36 yuan/ton from last week.

2. The main market price and spread performance of special steel

This week, Hangzhou, the main market for high-quality special steel in the country, closed 5300 yuan/ton, and Shandong received 5130 yuan/ton, and the leading city price difference was 170 yuan/ton.

Zhejiang market: Zhejiang special steel prices rebounded slightly this week. The mainstream price of 45#Φ30 and above is 5300 yuan/ton Huai 5390 yuan/ton South 5300 yuan/ton, Yuanli (direct delivery) 5300 yuan/ton Zhongtian 5300 yuan/ton Dongfang 5270 yuan/ton. On the market side: this week, the market transactions were fair at the beginning of the week, and the subsequent downturn continued. Traders fell prices to grab downstream channels and their mentality was unstable. Downstream: The order situation of downstream companies in different industries is different, the overall purchasing enthusiasm is not good, and the decrease in downstream demand is currently evident. The upstream side currently understands that some steel mills are dissatisfied with their orders. The output of the brand in July is expected to be slightly lower than that in June, but the market has a large amount of inventory to digest. The financial problem caused by the high inventory at the current price cannot be ignored. In general, the price of excellent steel is expected to consolidate next week.

Jiangsu market: The market price of Jiangsu special steel rebounded slightly this week, and the mainstream price of 45#Φ30 is now 5380 yuan/ton for Huaigang, Dongfang Special Steel Plant raises 5240 yuan/ton, Hanggang 5250 yuan/ton, 40Cr Huaigang 5620 Yuan/ton, gear Laiwu 5640 yuan/ton, chromium molybdenum Laiwu steel 5850 yuan/ton. Mysteel News: The total stock of bars in Jiangsu You Special Steel Plant is 480,000 tons, an increase of 17,300 tons from last week, an increase of 3.74% month-on-month, and an increase of 170,500 tons from the same period last year, an increase of 55.09% year-on-year. In terms of the market, in the traditional off-season, downstream demand is still poor, and factory warehouses and community warehouses are overwhelmed. It is expected that the price of Jiangsu special steel will be consolidated at a high level next week.

Central China market: This week, the price of the Huazhong premium special steel market was generally stable. Zhengzhou 45# Jinan Steel is 5500 yuan/ton, unchanged from last week; Changsha 45# Xianggang is 5300 yuan/ton, down 20 yuan/ton from last week; Wuhan 45# Xianggang is 5150 yuan/ton, unchanged from last week change. This week, the Huazhong special steel market price fluctuated within a narrow range due to changes in the futures market. Traders adjusted their quotations slightly according to market conditions. The actual transaction had a large bargaining space, the progress of destocking was slow, and inventory pressure was still under pressure; downstream enterprises’ demand was sluggish and orders were lacking. The willingness to purchase is not strong; mainstream steel mills in some regions have begun maintenance plans, and further wait and see for the production restriction policy. Orders are normal and inventories are high. On the whole, it is expected that the price of Huazhong's special steel market will be weak and consolidate next week.

Shandong market: This week, the price of Shandong special steel market increased slightly. The local special steel price 45# Luli 5130 yuan/ton, Fulun 5120 yuan/ton, Guangfu Dayuan 5280 yuan/ton, Xiwang 5310 yuan /Ton, Weigang 5180 yuan/ton, Juneng 5230 yuan/ton. This week, the market price increased slightly. Affected by the continued increase in the futures market, the market price increase sentiment gradually increased. However, given that the terminal demand has not increased significantly, the market price increase can only increase slightly. It is expected that the price of local high-quality steel will fluctuate strongly next week.

Chongqing market: The overall price of Chongqing special steel market continued to fall this week. The current market price is 45#5200 yuan/ton, Xining Special Steel is 5350 yuan/ton, 40Cr5550 yuan/ton, 20CrMnTi5750 yuan/ton, chromium molybdenum 6250 yuan/ton. This is down 50 yuan/ton from last week. At present, the total stock of bars in the Chongqing market is 105,000 tons, an increase of 2,000 tons from last week. This week, the price of high-quality steel in the Chongqing market continued to decline slightly. In terms of the market, the stock drop was slow, the market sentiment was poor, the downstream demand was in general, and the purchasing enthusiasm was not high. The market mainly consumed inventory. In terms of price: Most businesses hold a wait-and-see attitude, believing that prices will hardly rise in the later period, but due to the impact of cost support, the room for price drops is limited. On the whole, it is expected that the price of Chongqing's special steel market will fluctuate and run mainly next week.

3. Summary of price adjustments by special steel mills

From July 3 to July 9 the price adjustments of major special steel mills across the country are as follows: A total of 9 steel mills released price adjustment information in this period, and a total of 18 price adjustment information has been released. In this period, steel mills have adjusted their prices. The prices of steel mills have been mixed. Next week, we should continue to pay attention to the impact of consumer demand and steel mill maintenance.

4. Social inventory performance of excellent special steel

The national total inventory of high-quality special steel bar samples was 916,700 tons, a month-on-month decrease of 10,500 tons, a decrease of 1.13%.

The transaction volume of sample enterprises of high-quality special steel bars nationwide was 306,400 tons, an increase of 20,400 tons or 7.13% month-on-month.

5. The excellent special steel market will fluctuate next week

Judging from the above situation, the price of high-quality steel fluctuated in this week. On Monday, the market price mainly fell. The increase in the external market in the later period has a slight boost to the price. In terms of the market, due to price increases, traders’ shipments have improved compared to last week, but downstream demand is still unsatisfactory. In terms of inventory, traders and steel mills continue to accumulate funds at a high level, which intensifies cost risks, and it is difficult to reverse the weakness of supply and demand for a while. It is expected that the price of excellent steel will continue to fluctuate next week.