Logic and direction of the market

After the market fell in chaos, the mood began to stabilize, and we began to re-examine the logic and direction of the market. The market needs to balance the interests of all parties in the turbulent operation. The profits and losses of the upstream coal, coke and mining, the midstream steel mills, and the requirements of downstream customers… The steel mills have begun passive maintenance and production reduction, and the demand will gradually recover. In addition to the reduced demand for real estate, other demand will soon recover. With the announcement of winning the epidemic prevention and protection war in Shanghai today, the recovery of people flow and logistics across the country will be in full swing. The over fall of steel price has released the market risk, and the market price will return rationally. The main reasons for the recent market decline are: 1. The US Federal Reserve raised interest rates violently, causing concern about the economic recession; 2. The huge contradiction between supply and demand in China, causing pessimism in the market. The two main lines changed to some extent last week. Consumer inflation expectations have dropped from the 14-year high, and the urgency of the Federal Reserve’s aggressive interest rate hike may drop. The domestic industrial data ushered in the best data in nearly half a month. Demand picked up slightly and supply decreased. This week, some changes have taken place in the main line of market decline, the market bottom hunting mentality has increased, the demand for trade speculation has increased, the market transactions have improved, and the apparent demand has still increased.