China’s GDP growth disappointed market expectations and
deepened concerns of low resource demand in the world’s top steel consumer. On
top of that, other data showed that property investment for the first half of
the year sank by nearly 8%, pressured by low demand for new housing and
persistent stress from the property sector’s debt crisis that started in 2020.
China's June crude steel output rose 1.1% from May and 0.4% from a year
earlier, the statistics bureau said, as mills were encouraged to ramp up
production after steel prices rose. The world's largest steel producer
manufactured 91.11 million metric tons of the ferrous metal last month, data
from the National Bureau of Statistics (NBS) showed, higher than 90.12 million
metric tons manufactured in May and 90.73 million metric tons in the same month
in 2022. The average daily steel output in June stood around 3.04 million
metric tons, up from 2.91 million metric tons in May and higher than 3.02
million metric tons in June 2022, respectively, according to calculations based
on NBS data.
Technically market is under short covering as the
market has witnessed a drop in open interest by -2.92% to settle at 1660 while
prices are up 310 rupees, now Steel is getting support at 44680 and below same could
see a test of 44370 levels, and resistance is now likely to be seen at 45150, a
move above could see prices testing 45310.