Steel yesterday settled up
by 0.71% at 46890 amid hopes that demand in China may gain traction at the end
of the second quarter. Fresh data showed that iron ore imports in the
world’s top consumer and producer rose by 4.5% year-on-year during May, suggesting
that a pickup in demand for steel drove producers to increase input buying. The
data added some respite following mixed PMI results and concerning levels of
real estate investment, which in turn spurred bets that the Chinese government
may roll out hefty sums of stimulus in the economy.
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.
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 9.28% to settle at 1060 while prices
are up 330 rupees, now Steel is getting support at 46660 and below same could
see a test of 46420 levels, and resistance is now likely to be seen at 47050, a
move above could see prices testing 47200.