There is no demand to drive, how to shout, is empty talk! Ministry of Environmental Protection voice: "Grasp environmental protection to raw material prices" this is a false proposition!


Release Date:

2017/10/13

Introduction In recent years, the central environmental protection inspector has adopted "zero tolerance" iron fist control measures against pollution with the determination of strong medicine and the courage of strong men to break their wrists. But who would have thought that the theory of "green mountains and green waters are golden mountains and silver mountains" is like a shadow, and it is all kinds of sentimental jokes that add fuel to the flames for the price increase of raw materials: "Boss, hold on! The environmental protection agent will leave immediately!"

Introduction

In recent years, the central environmental protection inspectors have adopted "zero tolerance" iron fist control measures against pollution with the determination of strong medicine and the courage of strong men to break their wrists. But who would have thought that the theory of "green mountains and green waters are golden mountains and silver mountains" is like a shadow, and it is all kinds of sentimental jokes that add fuel to the flames for the price increase of raw materials: "Boss, hold on! The environmental protection agent will leave immediately!" "The hidden price hike behind environmental protection is about to begin. In the second half of the year, it will be good to buy the goods"......

In short, it can be said that the "price increase tide" and "out of stock tide" brought about by environmental protection are higher than one wave after another!

Ministry of Environmental Protection voice: "Grasp environmental protection to raw material prices" this is a false proposition!

On September 27, the Ministry of Environmental Protection held a regular press conference in September. At the meeting, Director Cui Shuhong of the Department of Environmental Impact Assessment of the Ministry of Environmental Protection made it clear: "We do not agree with the statement that environmental protection will affect economic and social development and lead to rising raw material prices."

In recent years, in the face of the smog problem that concerns the survival of hundreds of millions of people, the central environmental protection inspector has adopted a "zero tolerance" iron fist control measure against pollution with the determination of strong medicine and the courage of strong men to break their wrists. This environmental protection action, which covers 31 provinces, autonomous regions and cities in China, and more than 15000 people are held accountable, is highly praised by the masses. However, it has also been used by some raw material companies to become the backer of raw material price increases.

The raw material manufacturers who thought that after the 2016's raw materials soared, the raw material manufacturers who regained high profits will strive to maintain the hard-won stable situation and set an example for "rolling up their sleeves and working hard" in 2017. Who knows, starting from May, the prices of raw materials have soared again: the price of rebar, the price of thermal coal, the price of cement, the price of packaging paper, the price of chemical raw materials, the price of textile raw materials, and the price of dyeing......

 

Behind these price increases, raw material companies and stakeholders have pointed the finger at the environmental shutdown. Steel and coal, basic chemical industry, chemical fiber, printing and dyeing and other industries have raised the prices of these raw materials one after another on the grounds of limiting production capacity and shortage of raw material supply.

 

With the shadow, but also a variety of raw materials to promote the price increase of emotional jokes: "the boss hold on! Check environmental protection will leave immediately!" "The hidden price hike behind environmental protection is about to begin. In the second half of the year, it will be good to buy the goods". In short, it can be said that the "price increase tide" and "out of stock tide" brought about by environmental protection are higher than one wave after another!

In response to this phenomenon, an article in the Economic Daily wrote: Most of the people who are waving the flag for the "environmental protection supervision and price increase theory" are business owners. They use the name of "environmental protection" to carry out the "price increase". The "economic account" of personal profit ignores the "ecological account" of the sustained and healthy development of society ". "Grasping environmental protection leads to rising prices of raw materials" is a false proposition.

Environmental protection is not the price of the "murderer", but the "push"

It is undeniable that while the environmental protection supervision is carried out vigorously and in full swing, the prices of many commodities have indeed risen to a certain extent.

Take the printing and dyeing industry as an example, a large number of substandard supporting facilities have been shut down, sewage discharge is limited, price increases and queuing in the industry are endless, and the price of the terminal fabric market has indeed increased, especially for some conventional fabric products. Since August, it has entered a state of one price per week, and the downstream has also increased its hoarding efforts.

Through the in-depth analysis of these appearances, we can find that under the condition of market economy, the change of product price is mainly determined by the relationship between supply and demand, and there are many influencing factors, which do not depend on one aspect of environmental supervision.

Although the continuous high-pressure supervision of the Ministry of Environmental Protection does not directly regulate prices, through the elimination and shutdown of a large number of backward production capacity, it has had a significant impact on the balance of supply and demand of materials required for production and manufacturing, and gradually becomes a seller's market, which will inevitably cause raw materials. The price of the product has risen, which in turn has led to an increase in the price of finished products shipped by downstream production enterprises.

In fact, the truth is self-evident. It is by no means the relatively large-scale raw material manufacturers that are most affected by the environmental shutdown, but some small and medium-sized and backward companies. The reduction in market supply and speculation have caused the emergence of a "swarm" market. In the past month, the call for price increases in the name of environmental protection has not been high, and there are more signs that the prices of bulk textile raw materials have begun to fall sharply.

After an 8-day long holiday, October did not usher in the phenomenon of "good start", the calm of the market also shows one thing, there is no demand to drive, no matter how to shout, it is empty talk!

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