What will be the effect of supply on steel prices

From the perspective of supply, the entire Chinese steel market this year actually has certain supply problems. As the national carbon peak and carbon neutral targets are proposed, in fact, all localities are carrying out comprehensive rectifications for environmental protection. The requirements of environmental protection, the final result of continuous improvement, have actually driven the entire Chinese steel production into an era of comprehensive environmental protection, and steel companies are facing tremendous pressure.

If the production process and production technology of iron and steel enterprises do not meet the standards, it will inevitably lead to a decline in iron and steel production. Therefore, under the current situation of environmental protection rectification, some iron and steel enterprises will actually have a certain degree of output shortage, which actually leads to the decline of steel supply. Therefore, we can see that in the case of insufficient supply and a substantial increase in demand, it will inevitably lead to a rapid rise in steel prices.