🔹 Overall Viewpoint

The market is currently consolidating within the 3250-3350 range. The strength of demand recovery will play a key role in determining the extent of any rebound. Focus on tomorrow’s Steel Union data release for more insight, which will guide our next steps.

The speech by PBOC Governor Pan Gongsheng provided some positive sentiment, acting as a boost to market confidence, but the impact appears to be limited.

🔹 Market Outlook

Before the Two Sessions, the expected rebound is likely to be capped below 3400. However, after the Two Sessions, if policies and demand underperform expectations, the market may begin a smoother downward trend. A breakdown below the 3000 level seems increasingly likely, as the time spent in this consolidation phase has allowed for significant accumulation of downward momentum.

🔹 Operational Strategy

At this point, we maintain a cautious stance, with a focus on observing the market and waiting for clearer signals from upcoming data.

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