However, China's crude steel production in August declined by 4.8% compared to July, with some steel mills reducing output due to shrinking profit margins. Despite this drop, China remains the world's largest steel producer, with a 3.2% increase compared to the same period in 2022. Average daily steel output in August also showed a year-on-year increase. In India, finished steel exports decreased by 6.4% month-on-month in August but witnessed a 5.7% year-on-year increase. On the import side, India's steel imports from China reached a five-year high, with a 62% increase compared to the previous year during the April-July period.
From a technical perspective, the steel market is experiencing fresh buying momentum, indicated by a 10.32% increase in open interest, settling at 1,710. Prices have risen by 100 rupees. Key support for steel stands at 46,740, with a potential test of 46,590 if breached. Resistance is likely at 47,050, and a move above could lead to testing the 47,210 level