The driving force of the lead plate to kill has slowed down significantly, and along with the recent emergence of macro favorable factors and the low market price, the merchants have become more and more willing to support the market, which has weakened the momentum of the overall market downward adjustment. Faced with the current domestic rebar approaching 2,600 yuan, the lock price of medium and heavy plates below 2,800 yuan, and the market price of hot-rolled coils below 2,900 yuan, some of which have hit an 8-year low, the space for another downward trend is indeed thought-provoking. Although the "cost theory" has no effect on the spot of the steel market that was negatively suppressed in the early stage, it has largely digested the downward price momentum, and the author has gradually emphasized the key point that this round of steel prices can decline sharply and adjust to the end. The fact is that steel companies have room for profit and production continues to rise. Under the background of poor demand, the overall price will be interpreted in depth. The rhythm of adjustment is: steel prices go down - force steel companies to cut prices - shrink steel companies' profit margins - force steel companies to reduce production. Historical experience in the past, the market price of steel and the cost price of steel mills must be inverted by 200 yuan to make steel companies reduce production. According to this year's economic development cycle and the overall stable growth tone and the steel industry's lower and lower profit margins See, the lead plate market price is the same as the cost price of steel companies or slightly inverted, which will lead to a reduction in production, and steel companies actively reduce production and reduce resource supply regardless of demand, which can really boost the steel market. Sexual operation, it is difficult for steel prices to reverse pumping. A few days ago, the news of Sinosteel's overdue loans of tens of billions of yuan caused great waves in the industry. It was confirmed that as of the end of July, Sinosteel Group Corporation's overdue loans amounted to 690 million yuan, and the State Council did not get involved, and the banks did not relieve debts. , China Steel will solve the current problem by itself. Although Sinosteel Group's loans are not "overdue" and it is still operating normally, the turmoil has exposed the faltering pace of the central enterprise giant in the context of the industry downturn. For the current steel market, steel prices are so sluggish, the upstream billets are rising due to the futures market, and the lead plate market is showing signs of stabilizing. It is not that there is obvious support in the market, but that the market is oversold. After a short rest, it is difficult to become a climate, and the overall style has not been reversed.