🔹 Key Summary:
Steel futures remained under weak pressure near the bottom of the current range on April 29. The market showed signs of light volume, falling open interest, and a “near-strong, far-weak” curve structure, reflecting pessimistic sentiment on future expectations.

🔸 Key Market Drivers:

1️⃣ Position & Volume Signals:
The market saw reduced open interest and lower volume, suggesting a lack of conviction from both bulls and bears. The near-month contract outperformed the distant ones, indicating short-term hedging but poor forward expectations.

2️⃣ Commodity Pressure:
Coking coal was the weakest performer, showing signs of short-squeeze pressure on long positions. Additionally, the drop in international crude oil weighed on the broader commodity space, particularly chemicals, indirectly dragging down sentiment in the ferrous market.

3️⃣ Pre-Holiday Liquidity Drain:
Today marks the final trading day before the Labor Day holiday, with markets closing at 3:00 PM and remaining shut for five days. This contributes to cautious positioning and lower risk appetite across the board.

🔹 Strategy & Outlook:
• Market is still locked in a range-bound pattern, but momentum is softening.
• Expect muted trading with little directional commitment ahead of the break.
• Traders should avoid aggressive moves and consider risk control before the holiday.

🔸 Bottom Line:
• Sentiment is weak; futures structure reflects bearish expectations.
• Be patient—wait for clearer signals after the holiday break.
• Maintain light exposure and stay defensive.

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