🔹 Market Analysis
Driven by recent anti-overcapacity policies and the Ministry of Industry and Information Technology’s upcoming growth stabilization measures, market sentiment turned bullish yesterday. The groundbreaking of the Yajiang Hydropower Station further fueled buying enthusiasm.

Coking coal hit the daily limit-up, pulling the entire ferrous complex higher. Non-ferrous metals and chemicals also posted significant gains. However, in the night session, rebar and hot-rolled coil (HRC) showed signs of weakening momentum, with both contracts experiencing open interest reduction.

Notably, although coking coal continued its rally with a 2.6% gain overnight, rebar and HRC only edged up by around 0.4%, indicating a fading transmission effect from raw materials to finished steel.

🔸 Outlook & Strategy
We expect the steel market to maintain a high-level consolidation trend in the short term.

  • Rebar (Main Contract): Expected range between 3190–3230
  • Hot-Rolled Coil (Main Contract): Expected range between 3370–3410

📌 Summary
Policy optimism and raw material strength continue to lift sentiment, but rebar and HRC face diminishing momentum. Traders should stay cautious as the market enters a likely phase of range-bound volatility.

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