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