Profitability of steel mills temporarily turns negative, but steel mills can cope with losses by adjusting the ratio of scrap steel and medium to high-grade ore, and it is not necessary to reduce production. The pig iron production is expected to maintain a phased peak; if the demand for finished products deteriorates, steel mills may be forced to reduce production, leading to a further decline in the price of iron ore on the raw material side. The risk lies in the impact of the Fed's interest rate cut meeting on sentiment.