Steel dropped weak global economic growth outlook

yesterday settled down by -0.11% at 45810 under pressure from a weak global economic growth outlook and tepid demand in top consumer China. Factory activity in China slowed while manufacturing in the Euro Area and Germany contracted more than initially anticipated in June. Japan’s crude steel output is forecast to rise 2.2% in the July-September quarter from a year earlier, the Ministry of Economy, Trade and Industry said. Demand for steel products, including those for exports, is forecast to rise 0.9% to 20.37 million tonnes in July-September compared with a year earlier, the ministry said, citing an industry survey.

India’s finished steel purchases from China touched a six-year high in the first two months of the fiscal year beginning in April, according to provisional government data, while its overall imports reached a three-year high.In April and May, China emerged as the second-biggest steel exporter to India, selling 0.2 million metric tons of the alloy, up 62% from the same period a year earlier. India imported 0.9 million metric tons of finished steel in April and May – the highest since 2021 – and up 27% from a year earlier, the data showed. 

Technically market is under long liquidation as the market has witnessed a drop in open interest by -22.36% to settle at 1250 while prices are down -50 rupees, now Steel is getting support at 45690 and below same could see a test of 45580 levels, and resistance is now likely to be seen at 45970, a move above could see prices testing 46140.