Tapered Roller Bearings · Kingpin Thrust Bearing · Pillow Block Bearings Units · Deep Groove Ball Bearings
China's bearing steel prices continue to soar

Mar 03, 2021

In the past six months, the price of bearing steel in China has continued to rise, which has caused great difficulties to the production and operation of Chinese bearing enterprises and suppliers.

At the beginning of 2020, the operating revenue of major bearing enterprises in China's bearing industry dropped by 21%, reaching a new record low. In August, the revenue turned from negative to positive and began to grow steadily. Since the second half of the year, affected by multiple factors,China bearing raw materials began to rise sharply. By the end of the year 2020, the price of bearing steel increased by nearly 30%, with a net increase of RMB1300 yuan per ton of bearing steel and RMB2800 yuan per ton of bearing steel pipe. By the end of January 2021, the bearing steel has increased by RMB300 yuan per ton, with an increase of 35.6%. Coupled with the impact of the rising prices of various raw materials, the transportation, packaging and other related materials and auxiliary materials are also on the rise, which makes the operation of Chinese bearing manufactures very difficult.

China's Spring Festival in 2021 is special. In order to prevent the spread of the COVID-19, employees of China enterprises respond to the call, do not return home, enterprises do not stop work, and the demand for raw materials does not decrease in the off-season. The price of raw materials continued to rise after the Spring Festival 2021. Most China bearing enterprises are on the verge of loss. The orders received by enterprises are now hot potato. As far as the ability to resist the rising prices of raw materials is concerned, it is obvious that large enterprises have a stronger ability than small and medium-sized enterprises, which is related to the fact that small enterprises have a weak foundation, pursue short-term development and advocate zero inventory.

Bearing industry investment cycle is long, slow, but also a must face reality. The transformation and upgrading of enterprises need investment, including technology investment, information investment, personnel investment, asset investment and so on. Investment is the premise for the operation to enter a virtuous circle, and profit is the necessary condition to support the investment. Without profit, operation will be limited and development will be stagnant.

Contact Us
Latest News
welcome to SKET