🔹 Market Analysis

In last night’s session, coking coal weakened, followed by a decline in iron ore, while the rebar–HRC spread narrowed. The market shows a clear downward trend, with further downside momentum likely.

Looking ahead to September, fundamental factors will play a greater role in price direction. Data from both Steel Union and Steel Silver indicate that inventories are steadily building, which provides strong justification for continued steel price weakness.

🔹 Key Market Drivers

The most significant supportive factor comes from the tightened production restrictions in Tangshan. However, any policy-driven rallies should be viewed as opportunities to build short positions on strength.

🔸 Short-Term Trading View

  • Rebar (RB Futures):
    • Strong support around 3,100 CNY/ton
    • If this level holds → expect 3,100 – 3,150 range trading
    • If broken → potential downside extension to 3,070, with a short-term band of 3,070 – 3,120

📌 Strategy: Sell into strength; short-term trades should respect the 3,100 support level.