🔹 Market Overview
Yesterday’s unexpected tariff negotiation results surprised the market, effectively reducing the post-April 2 additional tariffs to just 10%. This policy surprise halted the recent downtrend and shifted the steel futures market into a phase of sideways consolidation.

🔸 Technical Signals
Monday’s price action featured significant long-liquidation (large drop in open interest) and increased volume during the rebound. This indicates that the rally was largely driven by short covering rather than active bullish positioning. As a result, the sustainability and upside of this bounce appear limited—but a bottom may have formed, at least in the short term.

📈 Resistance Levels to Watch
We expect the rebound to stall near the bottom edge of the post-Qingming downward gap:

  • Rebar: Strong resistance around 3170, with a second barrier at 3200
  • Hot-Rolled Coil: Key resistance at 3300, and again at 3330
  • Iron Ore: Resistance at 731, with a further level at 750

📊 Strategy Outlook
Given the transition to range-bound trading and recent technical action, our short-term view favors selling near the upper resistance boundaries of the current range. Bullish momentum lacks conviction, and any upward spikes may offer shorting opportunities.

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