Maintaining the basic judgment in the early stage, the price of the square tube market will show a trend of bottom-up before low and after high, while the volatility will be significantly narrowed, looking forward to a bottom-up in real demand. The price of iron ore is not as high as that of 2011, but there is little room for reduction.

　　Iron and steel capacity problems once again become the focus of the market and industry. We believe that excess capacity is very obvious and long-standing, but it is not the real reason for low market prices and low profits of the industry. The real reason is that the failure of the market price mechanism to regulate output, some of the higher marginal costs of steel enterprises, regardless of marginal costs and market prices upside down to maintain higher production, resulting in distortions in the market and Industry

　　The stock market often says, "It takes only a few days to build the top, but it takes several months to build the bottom." Why not in the domestic steel market? According to the feedback from the Chinese steel network market, after the cut in interest rates, most businesses do not feel the smell of price increases. The author thinks that good profits are always being built up, and the main reason is that the fundamentals of steel market are too bad. One is how can not pull, the other is how can not control, the supply and demand of the square tube are not concessional, the market can improve on the magic?