China's bearing steel price may fluctuate weakly

From January to October 2022, the output of crude bearing steel in China decreased by 6.20% year on year, and the output of bearing steel decreased by 2.88% year on year. Looking back at China's bearing steel market in November, the improvement of fundamentals continued to fall short of expectations, the demand remained at a low level year-on-year, and the overall market price showed a slight downward trend. Up to now, the average price of 50 mm (continuous casting) bearing round steel in China is 5380 yuan/ton. Recently, the pressure on steel pipe plants and forging plants to collect payment has continued to increase, and the tight capital is still the main factor restricting the price increase. At present, the customers' willingness to reserve has declined significantly, and the steel mills are not enthusiastic about reducing production, and the accumulation of stocks may gradually accelerate in the later period. Although the steel cost support is relatively strong, in view of the pressure on the demand of the manufacturing industry, it is expected that the market price of bearing steel will be weak and volatile in the next month, and the overall downward space is limited.