API 5L X56 PSL2 steel market prices may remain weak and fluctuate

At present, the national blast furnace operating rate is maintained at around 90%, which is a decrease from before. It is expected that the output of API 5L X56 PSL2 steel mills may decrease at the end of July, but the number is not large. In June, the average daily output of crude steel, pig iron and API 5L X56 PSL2 steel in China reached a new high, and social inventories were at a high level, which suppressed prices to a certain extent.

With the improvement of the production efficiency of the API 5L X56 PSL2 steel mill in the later period and the development of domestic infrastructure, the demand for iron ore remains strong. However, although the supply-side Brazil epidemic is no longer showing exponential growth, the development trend has not been reversed, and it is still in the middle of fighting the epidemic, so unstable factors still exist.

At present, the wait-and-see sentiment of the merchants has increased, and some merchants have given more quotations, focusing on active shipping policies. However, the strong performance of cost support and the strong willingness of API 5L X56 PSL2 steel mills to raise prices have formed a certain support for the bottom of API 5L X56 PSL2 steel prices. In the short term, API 5L X56 PSL2 steel market prices may remain weak and fluctuate.