prices faced a decline of -1.38% due to concerns
surrounding the extensive debt issues in the Chinese property sector. The
Chinese government has been implementing measures to stimulate real estate
activities in a bid to boost economic growth. This drop also coincided with
discussions about a notice from China's National Development and Reform
Commission regarding potential talks on iron ore prices with certain futures
companies. China, the world's leading steel producer, saw both its exports and
imports continue to decline in August. While China's measures to support
property developers could offer some backing to the iron ore market, an
immediate recovery in the sector is not anticipated.
China's
government has relaxed mortgage restrictions in cities like Guangzhou and
Shenzhen, extended support measures at the municipal level, and permitted 12
provinces to issue special financing bonds worth CNY 1.5 trillion. China's
exports of finished steel surged by 28.4% year-on-year to reach 58.79 million
tonnes from January to August. However, it's worth noting that the growth rate
in the first eight months was slower compared to the remarkable 31.3% increase
witnessed in the first half of the year. In contrast, India's exports of
finished steel declined by 6.4% month-on-month to 0.480 million tonnes in
August 2023, down from 0.513 million tonnes in July 2023.
From a technical
standpoint, the steel market experienced long liquidation, marked by a
substantial drop in open interest by -48.19%, settling at 430. Prices registered
a decline of -640 rupees. Support levels can be found at 44320, with the
potential to test 42950. Resistance levels may be encountered at 46670, and a
breakthrough could lead to testing at 47650.