The social inventory of 42CrMo4 pipe continued to decline, with a weekly decline of 4.21%, and the steel mill inventory increased by 9.09% on a weekly basis. The overall destocking of steel inventory has weakened.

Generally speaking, the main influencing factor of the recent policy side is to maintain supply and stable price. In this context, the short-term supply will still be maintained, but the rapid shrinkage of steel mill profits also restricts the output growth space. In the early stage, the high steel price has an impact on the short-term demand. Before the profits of the upstream, middle and downstream industries fail to reach the balance again, the demand may start slowly, which restricts the destocking speed of 42CrMo4 pipe.

In the near future, the market momentum is larger than the market and policy expectations, but with the extension of the adjustment time, the market will gradually return to the ideal. It is expected that the price volatility of 42CrMo4 pipe will gradually converge and enter the shock adjustment pattern, focusing on the performance at the end of the process of destocking.