Steel prices
fell by -0.9% to 46,410 due to profit booking as investors assessed the impact
of Beijing's economic support measures on steel demand in China, the top steel
consumer. Chinese housing sales dropped by 34% in August, contributing to
concerns about the country's slowing economy and potential defaults among
property developers. To stimulate housing demand, the Chinese government eased
mortgage rules and extended fiscal incentives and support measures. However,
these efforts had limited impact, leading to expectations of steel output cuts
in China's steel-producing hubs.
Global crude steel production rose by 6.6% in July to 158.5
million tonnes (mt) compared to the previous year. For January-July, production
in major steel-producing nations was at 1103.2 mt, down 0.1%. China, the top
producer, recorded 90.8 mt of steel production in July, up 11.5% year-on-year.
India's finished steel imports from China reached a five-year high in the first
four months of the fiscal year, with China becoming India's second-largest
steel exporter.
Steel is currently experiencing long liquidation, with a drop in
open interest by -16.28% to 1,080 contracts. Prices fell by -420 rupees. Key
support for Steel is at 46,150, with the potential for a test of 45,880 on the
downside. Resistance is likely at 46,770, and an upward move could lead to
prices testing 47,120.