The support factors of API 5L X70 PSL2 material price

Inventories of API 5L X70 PSL2 material and so on steel products for the whole year of 2020 are at a high level, basically about 30% higher than the same period in 2019. The inventory in March set a record for many years, reaching 23.127 million tons, an increase of about 47% year-on-year. After October, due to relatively strong demand, inventory of API 5L X70 PSL2 material and so on steel products has fallen rapidly. As of January 15, the social stock of API 5L X70 PSL2 material and so on steel was 8.598 million tons, a year-on-year decrease of 670,000 tons, or 7.8%.

In terms of cost, the support for API 5L X70 PSL2 material prices is still relatively large, and the price of raw materials has seen a large increase recently. As of January 19, the Platts Iron Ore Index was US$170.3/ton, which has been operating at a high level of more than US$170 for nearly 10 consecutive days, an increase of US$74.4/ton year-on-year, an increase of 77.6%, or about 481 yuan. The fourteenth round of increase in coke prices has landed, with a cumulative increase of about 800 yuan/ton. The sharp increase in raw material prices has greatly pushed up the cost of API 5L X70 PSL2 material and so on steel products.