🔹 Market Overview

The current price action across the board shows a clear range-bound consolidation.
Taking rebar as a reference:
📊 Rebar has been stuck between 2950–3010 for an entire week, with lower volumes and reduced open interest, reflecting a wait-and-see sentiment.

🔹 Key Market Characteristics

  • Raw materials: Going nowhere, flat moves.
  • Finished steel (rebar, HRC): Stuck in tight ranges.
  • Macro boost from U.S.–China trade talks is fading, as the market has fully priced in the initial optimism.

🔸 While a framework agreement has reportedly been reached, China has yet to make an official statement. This suggests:

  • The deal is less about tariffs, more about sector-specific regulatory loosening.
  • Negotiations may drag on, involving issues like rare earth exports, chip restrictions, aircraft sales, and student visas.

🔹 Strategic Outlook

The current rally lacks real strength.
Upside is limited, and the market is likely to drop a level once this consolidation ends — though a brief spike upward before that breakdown remains possible.

🔸 Core Strategy Remains:
❗️Sell the rallies. Avoid building long positions.

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