China's two sessions are approaching, and the environmental protection and production restriction is attacking again
After the May 1st movement, driven by the strong performance of rebar futures, the spot price of steel rose. In the unbalanced state of increasing supply while the market demand has not yet been fully released, environmental protection and production restriction is the most favorable choice at this stage.
The two sessions will be held in Beijing on May 22. In order to ensure the air quality during the meeting, more intensive and strict production restriction policies will be introduced in Beijing, Tianjin, Hebei and surrounding areas. With the time of the two sessions approaching, environmental protection and production restriction will be beneficial to the stability of steel price to a certain extent. In the long run, the steel price may continue to strengthen, which does not rule out the possibility of periodically rising, falling and bottoming adjustment.