Market Recap

📉 Last Week’s Performance:

  • Rebar closed with a weekly loss of -0.89%, forming a bearish candle with an upper shadow of 3 points and a lower shadow of 45 points.
  • Open interest increased while trading volume expanded.
  • Iron ore remained strong, and spot prices saw slight weekend gains (steel billet +¥10).

Market Outlook

🔹 Short-term consolidation continues, with rebar capped below ¥3,400, hot-rolled coil below ¥3,510, and iron ore below ¥835.
🔹 No major bullish catalysts for a breakout unless new policy support emerges.
🔹 March’s Two Sessions Meeting remains a key macro event, fueling market optimism.

Trading Strategy

✅ Buy on Dips: Current range ¥3,320–¥3,390 still favors long positions at lower levels.
✅ Hold & Observe: Market lacks a strong trend, making patience essential.
❌ Avoid Premature Shorting: No clear signal for trend reversal yet (except for hedging purposes).

Expected Upside: Targeting ¥3,450, with an extreme ceiling of ¥3,550.
Stay tactical, wait for stronger signals, and avoid unnecessary risk.

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