Steel settled
unchanged at 46170 as hopes of stimulus measures from the Chinese government
would spur construction demand for the world’s top consumer. Premier Li Qiang
stated that China is expected to reach its goal of 5% GDP this year, followed
by pledges that the government will launch practical and effective measures to
activate market vitality and expand demand. China's government has set a modest
GDP growth target of about 5% for this year after badly missing its 2022 goal
and state media reported the cabinet met to discuss measures to spur
growth.
India’s steel purchase from China touched one of the highest in
recent times for April-May, with 0.23 million tonnes (mt). Finished steel
shipments from China in April-May of 2022 was 0.14 mt; while that in the same
period of 2021 was 0.12 mt. Finished steel include hot rolled and cold rolled
coils and strips, other non-alloyed offerings, stainless steel and
alloyed-based offerings. China’s increased production capacity and the downward
trend in global steel prices have led to a surge in the influx of lower-priced
shipments into India.
Technically market is under long liquidation as the market has
witnessed a drop in open interest by -4.31% to settle at 2000, now Steel is
getting support at 45960 and below same could see a test of 45740 levels, and
resistance is now likely to be seen at 46450, a move above could see prices
testing 46720.