🔹 Market Analysis:

This week marks two key political events:

  • March 4: The opening of the Chinese People’s Political Consultative Conference (CPPCC).
  • March 5: The National People’s Congress (NPC).

The Two Sessions will be a crucial factor in market direction. If no industry-specific production cuts are announced, we expect the market to oscillate between 3270-3400 this week.

From a valuation perspective, raw material prices have weakened significantly, showing a continued downward trend, while finished steel prices remain relatively firm. This profit structure is unlikely to last long, suggesting potential volatility in finished steel prices.

🔹 Trading Strategy:

1️⃣ Maintain a sell-on-rallies approach.
2️⃣ If the market remains in a sideways range, adopt a wait-and-see approach with minimal trading.
3️⃣ If there is an upward movement, it presents an opportunity for hedging and positioning long-term shorts.
4️⃣ If the market declines, consider wider stop-losses and hold for a longer-term trend trade.

📉 Expected Range for Today: 3270-3350, with limited major trading opportunities.

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