🔹 Market Overview

Yesterday, the steel market saw a notable increase in open interest accompanied by price declines, while the stock market plunged sharply. The Wenhua Commodity Index shows signs of a potential breakdown, indicating continued weakness across the commodity complex. In the night session, iron ore and coking coal showed mild stabilization, but the overall downward trend remains intact.

🔹 Market Sentiment & Outlook

Despite temporary support from the raw materials side, bearish sentiment dominates. Weak fundamentals, combined with macro pressure from the equity market, continue to suppress buying enthusiasm. The probability of a short-term rebound remains low unless there is a major policy or demand shift.

🔸 Trading Strategy

Maintain existing short positions and stay patient — the trend is still your friend. For now, the best approach is to hold and wait for profits to unfold as the market continues its downward trajectory.