Steel yesterday
settled up by 0.19% at 46980 with the demand outlook buoyed by China's latest
economic support and a subdued dollar amid expectations of an interest rate
hike pause by the U.S. Federal Reserve. China's central bank's decision to cut
short-term borrowing costs for the first time in 10 months came as the latest
move by the country to support its economy, signalling potentially a rise in
demand for industrial metals.
China produced 92.64 million tonnes of crude steel in April, down
1.5% from a year earlier, the statistics bureau said. Global steel demand is
expected to grow by 1.7% in 2024 following a 2.3% rebound forecast for this
year based on a recovery in manufacturing activity, an executive from the World
Steel Association (WSA) said. India's finished steel purchases from China
touched a five-year high in April, and the country's overall imports of the
alloy reached a four-year high, according to provisional government data. In
April, China emerged as the second-biggest steel exporter to India by shipping
out 0.1 million tonnes, up 79% year on year. Imports from China accounted for
nearly a quarter of India's overall finished steel imports in April. India's
steel consumption is expected to grow by 7.5% during the current fiscal year to
March 2024, boosted by rising demand from the domestic construction, railway
and capital goods sectors.
Technically market is under fresh buying as the market has
witnessed a gain in open interest by 46.23% to settle at 1550 while prices are
up 90 rupees, now Steel is getting support at 46890 and below same could see a
test of 46800 levels, and resistance is now likely to be seen at 47120, a move
above could see prices testing 47260.