🔹 Market Recap
Iron ore surged 2% in Singapore following the China-Australia Free Trade MoU signed during the Australian PM’s visit. Domestic iron ore futures rose 1.56%, boosting the entire ferrous complex.

🔸 Sentiment vs. Fundamentals
The rally is sentiment-driven, disconnected from supply-demand fundamentals. With coking coal and iron ore rallying in turn, speculative momentum remains high in the short term.

📉 Trading Strategy
We believe iron ore is nearing overvaluation. Left-side short setups now offer favorable risk-reward. Recommend shorting iron ore futures with caution.

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