It was reported that China’s steel prices were likely to bottom out as a result of the second round of environmental protection inspections, scheduled to start recently.

In the last few years, the disturbance of China's environmental protection storm on the black and non-ferrous market had become a factor that could not be ignored in the industry.

The second round of environmental supervision and inspection would take three years (2019-2021) to complete, and key inspections would be carried out in some places in 2022. Among them, the first batch of central ecological and environmental protection inspectors was ready to move in and would be launched in the near future.

According to previous experience, it could be deduced that this time the environmental supervision would be conducted along the supply chain of black and non-ferrous products and would indirectly cause the fluctuation of steel market price.

Took Tangshan environmental protection production limit last week as an example, with the clear proportion of the production limit, the current price of the steel market, which had entered the low season of consumption, immediately increased significantly.