🔹 Market Snapshot

Last night’s session saw broad-based gains across the board —
✅ Raw materials led the surge,
✅ Finished steel followed,
✅ Clear patterns emerged: HRC stronger than Rebar, and near-month contracts outperformed far-months.

🔸 Drivers Behind the Rally

The upswing is largely being driven by optimism surrounding ongoing China–U.S. trade negotiations. This mirrors the May 12 rally, when a temporary tariff agreement lifted sentiment:

  • Previous highs (May 12 trade deal):
    • Rebar: 3130
    • HRC: 3270
    • Iron Ore: 738.5

🔸 This Round’s Potential Peaks

Considering the current price level of coking coal and coke, this round of rally is likely to fall short of the previous highs:

  • 🎯 Rebar target: 3060
  • 🎯 HRC target: 3190
  • 🎯 Iron Ore target: 735

🔸 Strategic Takeaway

Markets are now waiting for concrete results from the trade negotiations. The bullish momentum may continue in the short term, but upside potential is likely capped below prior highs.

Actionable Insight:
Stay cautious around target zones. Consider lightening longs or preparing fade trades if targets are met without strong follow-through from fundamentals.

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