Market Review: Steel Plate fell 3.6% this week, trailing the Shanghai composite index by 0.1% . The biggest gainers were star technology (2.1%) , hongda mining (0.0%) and shagang (- 0.2%) . This week thread, hot coil, iron ore, coke futures main contract latest quotes were-1.5% ,-0.7% ,-3.2% ,-2.1% ; thread, hot-rolled plate profit-5.6% , 13.5% . Industry tracking: Steel Social Inventory of 15.49 million tons this week, down 1.2% month-on-month; among them, long lumber, plate social inventory of 2.1% month-on-month, up 0.7% . This week, 237 steel traders across the country shipped an average of 222,000 tons per day, up 1.6 percent month on month, and Shanghai terminal thread snail shipped 27,000 tons, down 5.9 percent month on month. The operating rate of the rebar production line was 74.1% , and the operating rate of the rebar production line was 0.3% , respectively. The gross profit of thread, hot-rolled, cold-rolled and medium plate is 193,242,330 and 236 Yuan/ton, respectively, which are-11.4% ,-16.1% ,-6.1% and-9.5% , respectively. From this week's perspective, the industry has held steady. Since September, although the industry has entered the traditional peak season, but the industry demand performance is sluggish, spot turnover, shipments, inventory and other high-frequency indicators performance in general, weaker than the previous seasonal, the reasons for which in our early analysis, mainly from the demand overdraft, at present, digestion of the early overdraft still need some time. Industry fundamentals are expected to remain broadly stable in the near term. Third Quarter quarter is expected to be flat, year-on-year growth continued to improve. Recent steel prices, steel profit performance downturn, estimated that the five varieties of average gross profit fell to 400 yuan per ton. Third-quarter earnings growth is expected to be lower than the previous forecast of about 20% , but still slowly rising year-on-year; fourth-quarter profit absolute value is not optimistic, but still likely to increase year-on-year growth rate. CONTINUE TO BE OPTIMISTIC ABOUT THE VALUATION OF REPAIR: Low Valuation of Steel and low valuation of Special Steel have the opportunity. The opportunity to repair valuations at historic lows, fundamentals beyond expectations, dividends, and the resonance of Transformational Logic. In addition, Special Steel sub-plate overall valuation is also low, high-temperature Alloy, nuclear steel, stainless steel pipes and other sub-plate overall PE between 10-30 times, at the bottom of the historical region, typical Standard such as 13 times PE high-end manufacturing Jiuli special materials, 30 times PE high-temperature Alloy bibcock St Fugang, follow-up also exists the power of repair. Investment Recommendations: Good Plate Valuation Repair, The Standard Low valuation of Pu Steel Valin Iron and steel, Baosteel shares, new steel shares, Minguang, and other three special steel, low valuation of Special Steel Jiuli special steel, St Fugang, CITIC Special Steel, transformation of the type of shares of Hangzhou Steel, Shagang shares.