RAYC - Steel Prices Fall In China As Emissions Targets Are Relaxed

• Despite all the media coverage and public proclamations, did we really believe China was going to force its massive steel industry to shutter capacity and retrench if it meant an impact on GDP growth?
• It seems the about-turn in prospects has come about because Beijing is concerned that cutting too much too soon will result in constraints on economic growth and has started back-pedaling on earlier directives.
• MetalMiner’s monitoring of domestic Chinese steel prices has seen numbers come off across domestic markets and across all steel forms this week.

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