🔹 Market Overview
The night session saw a moderate rebound across ferrous futures with prices rising on falling open interest—indicating a typical short-covering move rather than aggressive bullish positioning. From a technical standpoint, prices remain within a range-bound pattern, with no clear breakout yet in sight.

🌍 Macro & Policy Updates

Global Factors:

  • U.S. April CPI came in slightly below expectations.
  • Trade tensions eased as tariff talks turned more constructive.
  • Optimism grew in global capital markets:
    ▪️ Economists cited a “goldilocks” state for inflation—low but not deflationary.
    ▪️ U.S. equities climbed, the dollar weakened, and commodities rallied.
    ▪️ The overall sentiment is pricing in a global economic recovery.

Domestic Factors:

  • China officially confirmed tariff reductions on U.S. imports today (May 14), in line with prior commitments.
  • This gave markets a short-term confidence boost, but demand-side strength remains a key missing piece.

📊 Key Trading Ranges & Resistance

  • Rebar (RB):
    ▪️ Strong resistance: 3170
    ▪️ Trading range: 3050–3150
  • Hot-Rolled Coil (HRC):
    ▪️ Strong resistance: 3300
    ▪️ Trading range: 3190–3280
  • Iron Ore (IO):
    ▪️ Strong resistance: 731
    ▪️ Trading range: 700–730

🚧 Iron Ore Leadership?
Iron ore is currently outperforming other ferrous contracts, trying to lead a sector-wide rally. However, underlying demand remains tepid, casting doubt on whether this leadership can hold.

📈 Trading Strategy
We maintain a light short position bias near the upper end of the trading ranges. Set tight stop-losses due to the volatility within the zone.

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