In December 2019, the PMI of the Chinese steel industry was 44.4%, a significant drop of 7.3 percentage points month-on-month, and returned to the level of prosperity and dryness. In terms of indicators, new orders and output indices have declined significantly. The finished product inventory index has risen sharply. The finished product ex-factory price has dropped significantly. The raw material purchase volume index has also declined to a certain extent. From a fundamental point of view, entering the off-season, the market is cautious, the order enthusiasm is reduced, steel mills control output in order to reduce operating risks, and prices return rationally.