As expected, Friday witnessed intensified market volatility. Rebar futures surged with over 100,000 contracts added, signaling fierce contention between bulls and bears. Despite this, prices held their ground without a downward breakout, indicating that the timing for a drop in steel products hasn’t arrived yet. However, bearish momentum continues to build, requiring further consolidation.

Iron ore showed pronounced weakness, breaking recent lows with increased trading volume and open interest. Coupled with the softness in coking coal and coke, this places downward pressure on steel’s price levels.

Key Observations:

  • Iron Ore’s Role: Weakness in iron ore suggests it may lead a decline, increasing the likelihood of steel products following suit next week.
  • Strict Adherence to Plans: Trading discipline is paramount—avoid impulsive decisions. Execute pre-set plans without deviation, ensuring entry and stop-loss levels are respected.

Our outlook suggests that iron ore’s recent moves point to a probable breakout in steel prices to the downside next week. Stay tuned for Monday’s market opening, where updated trading plans will be shared. Have a relaxing weekend!

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