Analysis and forecast of API 5L X70 PSL2 steel price in China

Last week (7.20-7.24), the price of API 5L X70 PSL2 steel in China showed a fluctuating upward trend, with slight differences in different regions: the rainfall in East China and South China gradually decreased, the transaction situation improved slightly, and the price of API 5L X70 PSL2 steel rebounded slightly; however, the price of API 5L X70 PSL2 steel in northern China did not continue to rise due to the high price center and the upside down situation of North and South prices. From the aspect of inventory, the inventory of API 5L X70 PSL2 steel increased for the fifth consecutive week last week, and the accumulation speed was accelerated. On the one hand, after entering July, under the dual influence of high temperature and rainy season, the overall demand for API 5L X70 PSL2 steel was low, and the just demand had not been released; on the other hand, the output of API 5L X70 PSL2 steel plant remained high, and the pressure on supply side did not drop. Under the influence of strong supply and weak demand, social inventory of API 5L X70 PSL2 steel was holding the increasing trend, the stock API 5L X70 PSL2 steel price was significantly suppressed.

At the same time, this week's raw material trend is still strong: iron ore is high running, coke stop falling rebound, cost support is very obvious. As the profit space of API 5L X70 PSL2 steel plant is compressed, the manufacturers are more willing to support the price; in addition, under the protection of macro policy, the investment demand also has a certain boost to the stock. Generally speaking, the pattern of strong supply and weak demand remains unchanged. Under the current situation of relatively strong supply and weak demand, API 5L X70 PSL2 steel merchants are more cautious in operation, which leads to frequent price fluctuations of API 5L X70 PSL2 steel and limited space. Based on this, we hold a neutral evaluation of this week's market: demand expectations remain, API 5L X70 PSL2 steel price is not stable.