🔹 Key Summary:
Steel futures traded slightly weaker on April 24, continuing their sideways movement within a defined range. With no clear bullish or bearish conviction, the market is waiting for more decisive macro signals, particularly from the upcoming Politburo meeting.

🔸 Key Market Drivers:

1️⃣ China Denies Tariff Talks with U.S.:
Chinese officials dismissed U.S. statements about ongoing tariff negotiations, calling it a “one-man show.” This signals no real progress on trade and dampens short-term optimism.

2️⃣ Steel Union Data Suggests Demand May Have Peaked:
Latest China Steel Union figures show signs of apparent demand topping out, which is a mildly bearish signal. Attention is now focused on next Thursday’s data release for further confirmation.

3️⃣ U.S. Market Sentiment Warms – Fed Rate Cut Expectations Rise:
Tensions eased around the “Fire Powell” narrative. The probability of a Fed rate cut in June has increased, boosting U.S. equities and improving global sentiment slightly.

4️⃣ Hot Metal Output Hits Record Highs:
Steelmakers ramped up hot metal production, largely driven by strong steel billet export orders. However, this hasn’t pressured domestic finished steel prices yet. That said, May order visibility is poor—raising concerns about demand sustainability.

🔹 Strategy & Outlook:
• Market remains range-bound: key range seen between 3070–3150.
• Near-term lacks strong direction; traders should remain cautious.
• Light short positions can be considered before the Politburo meeting.
• Avoid heavy positions until macro policy signals are clearer.

🔸 Bottom Line:
• Current moves are more noise than trend.
• Pre-meeting: low conviction, range-bound trade.
• Post-meeting: better opportunity for directional setups.

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