🔹 Weekly Recap

Last week marked the strongest rally in the past three months, with steel futures climbing a cumulative 80 points, signaling a clear breakout from previous consolidation.

🔸 Technical Performance (Rebar 2510 Main Contract)

  • The contract posted a weekly bullish candlestick with a 23-point upper shadow, 22-point lower shadow, and a 74-point real body
  • Closed at 3072, up 77 points from the previous week, delivering a +2.57% weekly gain
  • Trading volume expanded significantly, and open interest increased by nearly 100,000 lots
  • Net long positions outweighed shorts by up to 82,953 lots, showing clear dominance from bulls

🔹 Raw Material Insight: Coking Coal Still in the Lead

Coking coal remains the core driver of the ferrous complex.
Recent surveys show spot prices rising by 20–50 yuan, with fundamentals turning marginally stronger.
Additionally, high summer temperatures have increased electricity demand, boosting coal consumption and providing strong support for steel prices.

🔸 Market Outlook

Considering:

  • Ongoing expectations for Supply-Side Reform 2.0
  • Continued strength in the coking coal market

We believe that bullish momentum is not yet exhausted.
The market is likely to experience high-level consolidation or a slightly bullish tone this week.

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