yesterday settled up by 0.48% at 45860
as renewed hopes of economic support from China’s government offset alarming
signs over the health of the country’s economy and resource demand. Following a
cabinet meeting, policymakers stated that the government would continue to pass
measures to boost consumption and investment in the steel-intensive property
sector. The move was done after major developers missed bond payments and
investment firms skipped on securities coupon payouts, magnifying deflationary
concerns for real estate and a batch of weak macroeconomic data in the Chinese
economy. Besides efforts to stimulate consumption, the outlook of lower
construction demand drove the Chinese government to significantly lower the
production outlook for 2023, resulting in activity halts for key mill
hubs.
China produced 90.8 million metric tons
of crude steel in July, up 11.5% from the same period a year earlier, the
statistics bureau said. The July volume was slightly lower than 91.11 million
metric tons in June, data from the National Bureau of Statistics showed. The
world's largest steel producer manufactured 626.51 million tons of the ferrous
metal in the first seven months of the year, up 2.5% from the same period a
year before, NBS data showed.
The People’s Bank of China (PBoC)
unexpectedly slashed the one-year medium-term lending facility (MLF) rates by
15 bps to 2.50% on August 15th as it seeks to help an economy that faces risks
from a deepening property crisis and weak consumer spending. China's new home prices
fell for the first time this year in July, official data showed, as piecemeal
policy support failed to shore up the embattled property sector, heaping
pressure on authorities to introduce bolder stimulus.
Technically market is under fresh
buying as the market has witnessed a gain in open interest by 6.13% to settle
at 1730 while prices are up 220 rupees, now Steel is getting support at 45700
and below same could see a test of 45530 levels, and resistance is now likely
to be seen at 45970, a move above could see prices testing 46070.