On a global scale, global crude steel production saw a
positive trend, increasing by 2.2% in August 2023, reaching 152.6 million
tonnes compared to 149.5 million tonnes in the same period the previous year.
For the January-August period, steel production in the 63 nations responsible
for 97% of the world's steel output reached 1,256.4 million tonnes, marking a 0.2%
increase. China, as the top producer, reported a robust output of 86.4 million
tonnes in August, up by 3.2% from the same period in 2022. For the
January-August period, China's steel output was 2.6% higher, totaling 712.9
million tonnes. In contrast, China's crude steel output saw a slight decline of
4.8% in August, attributed to some steel mills scaling back production due to
shrinking profit margins. Additionally, India shifted to becoming a net
importer of steel in the July-September period of FY24, marking the first time
in several years. During this period, India imported nearly 1.50 million tonnes
of finished steel products, reflecting an 8% increase compared to the previous
year.
From a technical perspective, the market experienced
long liquidation, with open interest dropping by -13.39% to settle at 970.
Steel prices also declined by -110 rupees. Currently, steel finds support at
45,300, and a further drop could test 45,150 levels. On the upside, resistance
is likely at 45,600, with a move above potentially pushing prices to test
45,750.