Steel Insights Daily | July 16, 2025 | Macro Expectations Cool, Raw Materials Still Supportive — Steel Upside Capped

🔹 Macro Recap

Yesterday’s National Urban Development Conference surprised with its high-level participation — all seven Politburo Standing Committee members attended — but policy direction fell short of market expectations.

Rather than promoting aggressive growth or stimulus, the emphasis was on “enhancing the quality and efficiency of existing stock”, not incremental expansion.

This disappointed markets:

• Equities and commodities pulled back notably
• Steel bullish momentum weakened

🔸 Market Outlook

We believe:

• Upward momentum in steel is fading due to the diminished macro narrative
• However, raw material prices (particularly coking coal) continue to offer short-term support

As a result, we expect the steel market to exhibit a “high-level consolidation with a slightly bearish bias” over the coming days.

📉 Key Adjustment in Strategy:

• Shift from “range-bound trading” to a “sell-on-rally” approach
• We no longer recommend long positions in the short term
• Traders may consider building short positions at current levels as a base for further downside opportunities

---

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