yesterday settled down by -0.22% at 45980 amid persistent concerns regarding China’s sluggish property sector after recent economic data indicated a continued downward trend and a fragile recovery within the real estate sector. Home prices in China dropped by 0.2% year-on-year in April, marking the 12th consecutive month of decline, while property investment fell by 16.2% during the same period, the most since November 2022. Data showed new Chinese bank loans tumbled far more sharply than expected in April, adding to worries that the economy’s post-pandemic recovery is losing steam and putting pressure on the central bank to ease policy. Meanwhile, many Chinese steel mills have reportedly lowered their prices amid disappointment over steel demand during the country’s peak spring construction season. Some steel mills have reportedly restarted operations following the PBoC’s pledge of ample liquidity and bets that the government will roll out further stimulus.
China produced 92.64 million tonnes of crude steel in April, down 1.5% from a year earlier, the statistics bureau said. The April volume was also lower than the 95.73 million tonnes produced in March, data from the National Bureau of Statistics (NBS) showed. 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. In the long run, the Association of Southeast Asian Nations (ASEAN) is expected to see a doubling in steel demand by 2035 from 80 million tonnes currently, Frank Zhong, the association’s deputy director general told an industry conference.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -11.65% to settle at 1820 while prices are down -100 rupees, now Steel is getting support at 45790 and below same could see a test of 45590 levels, and resistance is now likely to be seen at 46270, a move above could see prices testing 46550.
