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yesterday settled flat at 45660 despite renewed bets that economic support from Beijing will spur demand for construction inputs. Market players noted that the implementation of macro and micro-targeted easing policy measures returned on the municipal scale, while another report stated that Beijing permitted 12 provinces to issue CNY 1.5 trillion of special financing bonds. The measures respond to a series of data underscoring the slowdown in the Chinese economy and recent concerns that deflationary pressure for housing could trigger a crisis in the Chinese financial system. Besides efforts to stimulate consumption, the outlook of lower construction demand drove the Chinese government to significantly lower the production outlook for 2023, resulting in activity halts for key mill hubs.
China produced 90.8 million metric tons of crude steel in July, up 11.5% from the same period a year earlier, the statistics bureau said. The July volume was slightly lower than 91.11 million metric tons in June, data from the National Bureau of Statistics showed. The world’s largest steel producer manufactured 626.51 million tons of the ferrous metal in the first seven months of the year, up 2.5% from the same period a year before, NBS data showed. The People’s Bank of China (PBoC) unexpectedly slashed the one-year medium-term lending facility (MLF) rates by 15 bps to 2.50% on August 15th as it seeks to help an economy that faces risks from a deepening property crisis and weak consumer spending. China’s new home prices fell for the first time this year in July, official data showed, as piecemeal policy support failed to shore up the embattled property sector, heaping pressure on authorities to introduce bolder stimulus.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 15.93% to settle at 2110 while prices are down -40 rupees, now Steel is getting support at 45420 and below same could see a test of 45190 levels, and resistance is now likely to be seen at 46040, a move above could see prices testing 46430.
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