From rising to falling, why did the steel market plummet?

The market weakened today, and the prices of finished products fell almost across the board due to the decline in the disk. Speculative demand dwindled and sentiment deteriorated. Due to the rapid changes in the rhythm of the market, the good start yesterday was quickly reversed by the sudden decline in the market, but the overall transaction performance was average.
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The first-line market understands that the weakening of the market is due to the reduction of the bullish factors accumulated during the holidays. The decline in the disk is mostly a blow to the already optimistic expectations and confidence that demand will warm up in October, especially since there is no obvious increase in demand after the holiday. Why don’t you want to stock up? From the perspective of the middle and lower reaches, low inventory in the downstream has become the norm this year, especially in the downstream manufacturing industry, and the orders are not very satisfactory. In addition, the market is in a downward cycle, and most companies are in the rhythm of on-demand procurement. The ease of midstream trade generally reduces orders from steel mills. Even if the market rebounds, if there is not enough room for expected market prices and profits, it will not take risks easily unless there is a good futures hedge or a mature and stable anti-risk model. If the risk is released with the collapse of market mentality after a sharp decline in July, someone will take over. However, at present, the steel price has been running a weak rebound for a long time, and it has not stepped out of the new trend.
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In the absence of obvious negative factors in the fundamentals and policies, the expectations for October have weakened, and the macro bearish logic has not yet reached the time when the market has turned and fallen. In particular, in the case of low inventory and local lack of specifications, steel mills will reduce production and support the market, and there will be strong short-term resilience in the short term. The turning point of the market will have to wait at least until next week’s macroeconomic data is released or even before and after the conference. In the short term, it still oscillates.
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