Market Analysis

Yesterday’s Performance: The market saw intensified choppy trading with overall fluctuations, but the bottom levels showed a slight upward trend.

  • Key Observations:
    • Iron ore remains strong, while coking coal and coke are weakening.
    • Steel markets are volatile, with slightly higher bottoms due to supportive supply-demand fundamentals.
    • Rebar transactions have been relatively solid over the past 2-3 weeks, with some regions experiencing shortages in specific specifications.
    • Steel mills continue to anticipate restocking iron ore inventories, driven by expectations of favorable outcomes from key upcoming meetings.

Outlook:
Ahead of these crucial meetings, the probability of significant price declines is low. The market is expected to remain on a slightly bullish trajectory in the short term. However, steel prices are likely to face downward pressure in the longer term, making timing critical for participation.

Strategic Recommendations

  • Patience in Entry: Now is not the time to rush into the market. The optimal entry point is expected to be around the time of the key meetings, which we anticipate will be announced next week.
  • For Inventory Holders: Utilize the current price increase as an opportunity to reduce stock levels and lock in profits.

Conclusion: “Watch but don’t act” remains the best strategy for now. Stay vigilant and monitor announcements for the right moment to participate.

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