Steel output continued to decline sharply, hot coil output rebounded at a low level, inventory performance was lower than market expectations, and inventory rose month on month against the background of continuous sharp decline in output.

From a fundamental point of view, at present, both supply and demand of spiral rolls are facing a pattern of double reduction. On the one hand, due to the impact of the off-season consumption in China, on the other hand, the strength of overseas demand has weakened month on month, and the demand side is weak and stable.

On the supply side, due to the implementation of production reduction policies throughout the country since July, the steel supply maintained a high decline rate, and the contraction of the supply side exceeded market expectations.

Recently, with the reduction of rainfall, the transaction of building materials terminals has improved slightly. At the same time, Tangshan issued a document to reduce the output in 2021, which once again boosted the market, with strong short-term shocks.

From this point of view, steel will show an upward trend.