🔹 Market Analysis:

Yesterday, iron ore saw another sharp decline, while finished steel remained relatively firm. This signals a potential production cut policy in the near future, which we need to closely monitor.

There are unverified reports circulating about production restrictions, but their authenticity remains uncertain.

Today marks the opening of the Chinese People’s Political Consultative Conference (CPPCC), followed by the National People’s Congress (NPC) tomorrow. The Two Sessions will run for six days, making them a critical factor influencing market trends.

The combination of potential production cuts and policy announcements will be key in shaping the steel sector’s outlook. I will provide timely updates as more information becomes available.

🔹 Trading Outlook:

  • Without production cuts: The market is expected to trade between 3270-3370.
  • With production cuts: Prices could shift higher to a 3400-3500 range.

Strategic Focus: Given the current setup, shorting raw materials remains a safer bet.

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