🔹 Overall Viewpoint

With the Lantern Festival behind us, demand is expected to recover this week. Coupled with last week’s steel price decline, we expect the drop this week to be limited. The most likely scenario is a short-term dip followed by a small rebound.

The Two Sessions have not yet officially started, and the strength of demand recovery is still uncertain. As such, the likelihood of a sharp collapse in the black metals sector this February is relatively low.

After the Two Sessions in March, the true market picture will become clearer, and that’s when we can make more decisive moves.

🔹 Operational Strategy

From now until the Two Sessions, our focus should be on defense. Light-position strategies are recommended, with an emphasis on shorting at higher levels. The key is to wait for clearer signals and act more aggressively post-Two Sessions.

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