🔹 Market Outlook:

Steel futures tested previous low levels but did not break down, with decreasing open interest and lower trading volume, indicating a lack of strong selling pressure. Contract rollovers are accelerating, suggesting continued position adjustments.

🔹 Fundamental Analysis:

1️⃣ Raw Material Trends:

  • Iron ore remains relatively strong, offering some support to steel prices.
  • Coking coal and coke continue to weaken, with coking coal dropping below 1,000 amid increased open interest and higher trading volume, signaling further downside pressure.
  • Divergence between iron ore and coal prices highlights potential instability in raw material costs.

2️⃣ Macro & External Factors:

  • U.S. stock market rebounded overnight, recovering its initial losses, which provides short-term support for industrial commodities.
  • Despite near-term stability, the overall trend in steel remains bearish, as the impact of government subsidies and export rush orders only delays the fundamental downtrend.

3️⃣ Key Risk Events:

  • April 2nd – Global Tariff Decision: A critical event that could introduce significant market volatility.
  • April 5th – U.S. Non-Farm Payroll Report: Another key factor influencing macroeconomic sentiment.

🔹 Trading Strategy:

✅ Main Strategy:

  • Continue short-selling on rallies (“Sell on Strength”), in line with the previous day’s plan.

✅ Position Management:

  • Traders who entered positions in the night session should follow their existing trading plans and hold positions accordingly.
  • Any further market discussions can be continued in the trading group.

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