Spot rebound in steel market is weak, can production reduction of steel mills promote the market up?

Today’s market is stable and rising, but the momentum is weaker than yesterday. On the whole, the spot market is weaker than the futures market, and the market sentiment is not high. Most of them are on-demand procurement, and there is little speculative demand. Businesses are still cautious.
The macro data came out today, and the economic data for October was generally weak. In particular, the industrial added value, which has grown for two consecutive months, slowed down to 5.6%, significantly lower than the 6.3% in the previous month. Consumption still fell, and only infrastructure performed better in the investment data, but it also fell back to 9.4% to below double digits.
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From a fundamental point of view, the market is hyped to limit production. In October, my country’s crude steel output fell to 79.76 million tons, falling below 80 million tons, significantly lower than the output of nearly 87 million tons in the previous month, reflecting the obvious increase in the reduction of steel production in October under the pressure of losses. However, the total amount in the first 10 months is still higher than that in the first 9 months. The annual crude steel output is still more than 1.03 billion tons based on the output in the first 10 months. There is almost no suspense to break through 1 billion tons. In some markets, the proportion of production restrictions is rumored. In fact, the current production restrictions put pressure on local governments. On the one hand, it is related to taxation, and on the other hand, it is related to employment. Unless the loss-making voluntary reduction of production, the non-market reduction policy may be difficult to implement.
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From the current point of view, due to losses forcing steel mills to reduce production, resulting in a lack of specifications in the market. The size and level of this year’s transactions cannot be measured by the normal volume of the previous year. The current market confidence is low, and the market outlook is not very clear. And stocking, winter storage, at least not yet found a margin of safety. From a morphological point of view, the rebound has not yet ended, but at the same time, it is also necessary to prevent the risk of ascribed and fall.
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