🔹 Market Overview

The bullish momentum from earlier U.S.–China trade negotiations has now been fully priced in, and attention has shifted back to weak fundamentals.

Latest Steel Union data leans bearish. Futures saw mild increase in open interest alongside price declines, but trading volume has yet to expand — a sign of cautious sentiment.

🔹 Night Session Recap

Prices continued drifting lower in the night session, now hovering near the bottom edge of the current range.

🔹 Fundamental Insights

  • Hot metal output remains at a high level.
  • Iron ore is holding firm, supported by production demand.
  • Steel mills face little pressure on orders, giving them some pricing power.
    However:
  • End-user demand remains sluggish, weighing heavily on steel prices.
  • The supply-demand scale is tilting downward.

🔹 New External Headwind

The U.S. just announced new tariffs on steel-made home appliances, adding extra bearish pressure to an already strained market.

🔸 Outlook

Given all factors, futures are likely to remain under pressure today.
We maintain a bearish short-term view, especially near the upper end of the range.

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