The two sessions focus on promoting pollution prevention, can steel prices catch up with the ride

On May 22, in the State Council, Premier Li Keqiang's government work report, there was a set of figures that were very eye-catching. This set of figures is 25 billion yuan, 31.7 billion yuan, and 4 billion yuan. They are used to fight for blue sky, clear water, and clean land in 2020, and to prevent pollution in the air, water, and soil.

The direction of this year’s environmental protection policy remains unchanged, and the efforts to prevent and control pollution will also increase and become more precise. With the tightening of environmental protection policies, can steel prices rise?

BBN Steel believes that because this year is the year of the end of the blue sky defense battle, in order to achieve the relevant environmental protection goals, environmental protection will be strengthened, which will be beneficial to the steel market in the long run. However, with the increase of ultra-low-emissions reform steel companies, even if the environmental protection policy continues to be strengthened in the later period, the effect of limiting production can no longer be the same. The trend of steel prices is the result of the combined influence of various factors. Under the current accelerated release of production, the market's supply pressure has increased; coupled with the larger price increase in the previous two weeks and the faster speed, it has made the downstream undertaking insufficient. Therefore, steel prices may fluctuate recently.