API 5L X42 PSL1 steel price is easy to rise but difficult to fall

From the supply side, China's steel industry will be affected by the adjustment of "carbon neutral" strategic policy, which will restrict domestic API 5L X42 PSL1 steel production in the medium and long term. In the short-term, Tangshan, Shandong environmental protection limit production, inhibit the start of steel plant, the overall output remains relatively stable; the demand side continues to remain at a relatively high level, while the demand growth is still upward, the downstream consumption situation is relatively positive; the total steel inventory continues the destocking state, with the downstream consumption increasing and higher than the output, and the output is relatively stable. The overall fundamentals are relatively strong, which strongly supports the API 5L X42 PSL1 steel price.

In addition, internationally, steel prices in major global economies are accelerating. The price gap between China and the United States is expanding, exceeding the high level in recent years. The price gap repair is expected to drive the API 5L X42 PSL1 steel price in China to continue to rise. On the whole, API 5L X42 PSL1 steel price is easy to rise and difficult to fall in the future, and the upward probability of continuous shock is large.