API 5L X56 PSL1 steel price may lack support at present

API 5L X56 PSL1 steel prices still hit a new high after the Labour Day holiday, despite the slowdown of inventory de stocking and the growth of supply. The market's worry about the shortage of API 5L X56 PSL1 steel due to the contraction of supply in the future is based on the premise that the demand for API 5L X56 PSL1 steel still has a large growth this year.

But from the perspective of the whole year, both supply and demand have less than expected risks. We expect that after the demand gradually enters the off-season, the current high inventory level may exert greater pressure on the price of API 5L X56 PSL1 steel. If the demand growth and supply side adjustment are not as expected, API 5L X56 PSL1 steel price may lack support at present.