API 5L X65 PSL1 steel price in May has strong upward momentum

Under the influence of supply reduction expectation and strong performance of raw materials and fuels, steel enterprises have chosen to support the price, which makes the steel price rise more dynamic in May. It is expected that API 5L X65 PSL1 steel price may exceed the historical high in the later period. But at the same time, it should be noted that while the steel price continues to rise, the market risk exposure is also further expanding.

On the one hand, the current steel price rise is mainly expected, and the demand support of API 5L X65 PSL1 steel price rise is not stable; On the other hand, under the "two carbon" policy, the mismatch between supply and demand and the shortage of resources caused by environmental protection and production restriction are only regional, not national. At the present stage, the absolute resource supply of the market is not shrinking significantly, and the gap between supply and demand of the market is slowly repairing. Even in a bull market, prices don't just go up. Moreover, the current market belongs to the "policy market", rather than relying on the fundamentals of the bull market, once the late market expectations are blocked, API 5L X65 PSL1 steel prices may fall from a high level.