🔹 Market Analysis:

1️⃣ Global Market Impact:

  • US Stock Market Plunges triggered fresh selling pressure in the black metals sector.
    • Rebar saw a significant increase in open interest, with 120K contracts added during the day session, and 17.5K contracts in the night session.
    • Glass prices also plummeted by 4%, marking new lows, with open interest rising by 100K contracts.
    • Risk-off sentiment dominates the global market—capital outflows and heightened volatility.

2️⃣ Domestic Policy & Industry Outlook:

  • Two Sessions Review:
    • Policy expectations unmet—the government’s response on black metals remained status quo, with no significant stimulus or breakthrough on supply cuts.
    • The absence of new production cut policies (no mention by the NDRC) left the market disappointed, eroding earlier bullish expectations.
    • “Steady as she goes” remains the core tone of policy, which seems insufficient to support a bullish rally.

3️⃣ Technical Analysis:

  • Downward Momentum Continues:
    • Current downtrend likely not finished yet. Expect a slow grind lower. The market is likely to experience a “small-step, slow-decline” pattern:
      • Consolidation phases will lead to gradual downward movement.
      • No new highs at the top, but new lows continue to form.
  • Key Levels to Watch:
    • Resistance: 3300-3350 range, strong selling pressure at the highs.
    • Support: 3230, any break below could signal deeper declines.

🔹 Trading Strategy:

✅ Short bias remains dominant. Continue selling near resistance levels.
✅ Look for slower, incremental down moves, especially if market fails to recover.
✅ Maintain risk management, as volatility spikes in the near term.

🚨 Stay alert to external factors—global market reactions and domestic policies remain key drivers.

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