🔹 Market Overview

A potential rebound in steel prices was anticipated due to the prior choppy decline and strong price support from mills. The key market tension had been between weakening coking coal and strengthening basis, which once hinted at a short-term bottom.

However, former President Donald Trump’s abrupt announcement of a 50% tariff hike on steel and aluminum imports has added significant bearish weight to the market. This fresh external pressure has shifted momentum clearly in favor of the bears.

🔸 Technical Snapshot

Last week’s technical performance confirmed bearish control:

  • Weekly candle: upper shadow of 5 pts, lower shadow of 15 pts, body of 79 pts
  • Close: 2961, down 85 pts from the previous week
  • Weekly drop: -2.79%
  • Open interest: +137,800 contracts
  • Volume: surged significantly

This reflects a classic “price-volume down” structure, indicating weakness and sustained pressure.

🔸 Market Outlook

With no major bullish policy stimulus and external headwinds mounting, the steel market faces both domestic strain and global pressure. A gap-down opening followed by continued intraday weakness is the most likely scenario today.

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