There is limited room for China's API 5L X42 PSL2 steel price to fall in the short term

At present, the toughness of API 5L X42 PSL2 steel price is still strong. In the short term, there is limited space for API 5L X42 PSL2 steel prices to fall, and more steel prices will continue to rise, but the rising speed is relatively slow compared with the previous period. The reasons for this judgment are as follows:

First, the cost of API 5L X42 PSL2 steel is rising. After several rounds of adjustment and reduction, coking enterprises once again started a new round of adjustment and increase, and the coke price ended the previous weakness and began to gradually strengthen.

Secondly, iron ore prices continued to rise recently. The price of raw materials and fuels is stable and strong, and the cost of API 5L X42 PSL2 steel is rising, which further blocks the downward space of steel price.

Finally, China's economic data in the first quarter is bright, and the investment in steel demand related fields shows the phenomenon of "accelerating". The eye-catching performance of the downstream industry makes the market participants keep optimistic expectations for the later demand, the manufacturers are willing to support the price obviously, and the API 5L X42 PSL2 steel price still has some room to rise.

On the whole, with high cost operation and strong market expectation, this round of steel price adjustment is expected to achieve a "soft landing", and the API 5L X42 PSL2 steel price does not have the conditions to fall sharply in the short term.