Market Review

Yesterday’s session exhibited range-bound consolidation between ¥3,320–¥3,390, lacking a clear directional trend. The market currently struggles to break out of this zone, indicating temporary equilibrium.

Fundamentals & Policy Insights

📌 Supply & Demand:

  • Latest Steel Union data shows rising inventories, but apparent consumption is rebounding rapidly.
  • Compared to last year, demand has increased by 500,000 tons, offering fundamental support.

📌 Policy Expectations:

  • The State Council’s February 5th meeting emphasized strengthened counter-cyclical adjustments and the need for impactful policy measures.
  • Investors are pricing in potential stimulus policies ahead of the March “Two Sessions” meeting, adding bullish sentiment to the market.

Market Outlook & Trading Strategy

🔹 Short-Term Range: ¥3,320–¥3,390 (until early next week)
🔹 Potential Breakout Target: ¥3,400+
🔹 Mid-Term Fluctuation Zone: ¥3,350–¥3,450

💡 Trading Strategy:
✅ Buy on Dips: Favorable for long positions near the lower range.
✅ Hold or Observe: If uncertain, it’s fine to wait for a clearer breakout.
❌ Avoid Shorting: Current fundamentals and policy outlook do not favor a bearish stance.

Bottom Line:
The market remains range-bound for now, but upside momentum is building with demand recovery and policy expectations. Maintain a cautiously bullish approach and look for buying opportunities on dips.

📌 Daily insights provided by LangZo Steel. For reprints, please credit LangZo Steel.