🔹 Market Overview: Economic Slowdown Fears, Tariff Battle Escalates

  • U.S. Tariff Effects: As the U.S. tariff increases on Chinese goods take full effect, China’s strong retaliation has caused market expectations to shift.
  • Global Impact: The market is now trading with a heightened sense of economic recession risk, and this has been reflected in U.S. stock market turmoil—with major indices experiencing over 10% declines in two days.
  • Bond Market Reaction: U.S. Treasury yields are falling as investors seek safe havens amidst the global risk-off sentiment.
  • Black Metal Sector: While the impact has not yet fully manifested in the steel market, it is expected to show today as markets react to the escalation of the tariff war.

🔹 Steel Price Forecast for April 7

  • Futures Market: Expect a lower opening with prices breaking the 3100 level for the 05 contract. The 10 contract is projected to trade between 3100-3200.
    • 05 Contract: Likely to break 3100
    • 10 Contract: Expected to fluctuate between 3100-3200

🔹 Key Factors & Strategy

  • Tariff Escalation: With China’s countermeasures adding more uncertainty, the economic recession risks are now driving market sentiment.
  • Impact on Steel: This heightened uncertainty is expected to lead to further price declines in the steel market today.
  • Short-Term Strategy: Given the global risk-off environment, we expect further downside in rebar futures, with a weekly low likely being set today.

🔹 Trading Plan

  • Short Strategy: Given the anticipated downward pressure, focus on selling on rallies and target rebar futures breaking 3100.

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