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experienced a marginal decline of -0.17%, settling at 46540, as worrisome data from China sparked renewed expectations of stimulus measures from Beijing. Chinese construction companies reported substantial losses in their latest quarterly earnings, largely attributed to plummeting demand and concerns of oversupply in the housing market. Furthermore, policymakers extended both macro and micro-targeted support measures at the municipal level. Additionally, they allowed 12 provinces to issue special financing bonds totaling CNY 1.5 trillion.
Meanwhile, Chinese steel producers increased production since mid-August in anticipation of potential output cuts mandated by policymakers in the coming weeks. Global crude steel production saw a notable 6.6% increase in July, reaching 158.5 million tonnes, up from 148.9 million tonnes in the same period last year. Notably, China, the top producer, produced 90.8 million tonnes in July, marking an 11.5% increase compared to the previous year. India’s imports of finished steel from China reached a five-year high in the first four months of the fiscal year, starting in April. During April-July, China became India’s second-largest steel exporter, with sales of 0.6 million metric tons, reflecting a 62% increase compared to the same period a year earlier.
From a technical perspective, the steel market is currently undergoing long liquidation, with open interest falling by -6.12% to settle at 1840, accompanied by a price decrease of -80 rupees. Steel is finding support at 46440, and a breach below this level could lead to a test of 46330. On the upside, resistance is expected at 46660, with potential for prices to test 46770 if this level is surpassed.
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