API 5L grade X56 PSL2 steel supply increased

Supply pressure will weaken the driving force of increased demand on prices. The biggest constraint on API 5L grade X56 PSL2 steel prices in the later period lies in the supply. First of all, API 5L grade X56 PSL2 steel inventory is still at a high level. According to monitoring data, on August 21, the social inventory of steel in 29 key cities across the country was 20.6% higher than the same period last year. Among them, building materials were 31.7% higher than the same period last year, and steel plates were 3.2% higher than the same period last year.

Secondly, API 5L grade X56 PSL2 steel production is also growing rapidly. In early and mid-August, the average daily crude steel output of key steel enterprises was 2.153 and 2.161 million tons, an increase of 5.1% and 5.2% respectively.

In addition, the large-scale replacement capacity will be put into production before the end of the year. Although the capacity replacement projects are all reduction replacements, the new production capacity equipment is advanced and the production efficiency is high, so the supply of the steel industry may be increased invisibly. API 5L grade X56 PSL2 steel supply is also expected to increase.