SHANGHAI, Mar. 6 (SMM) – Environmental protection issue has been a hot topic in recent days in China. The implementation of new strictest-ever environmental protection laws has begun to affect polluting enterprises in some regions.
How the latest environmental protection drive will impact China’s ferrous and non-ferrous market?
LME nickel rebounded following the news of closures at NPI producers in Shandong Province, China.
“The rally in nickel market will not be sustainable, and current supply remains sufficient,” SMM’s nickel analyst said.
"The impact on copper market will be small, as major copper smelters meet environmental protection standards," an analyst from Galaxy Futures told SMM in the interview.
The ferrous metals market will suffer the biggest impact from the environmental protection campaign.
Among the 45 closed producers in Linyi, steel companies composed of the larger part.
"The closures will reduce steel supply, and this will support steel prices, but the raw material market will also be affected by the new rule, which will undermine the support on steel prices," another analyst from Galaxy Futures said.
The enforcement of environmental protection measures will also affect its results of environmental protection campaign, interviewed analysts added.