Steellong : Technical View : 05.12.2019
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Steellong on ICEX settled up 0.21% at 29260 on short covering after prices dropped as renewed trade uncertainties intensified risk aversion and weighed prices.
US President Donald Trump has signed two bills supporting the Hong Kong protesters into law, and this fueled trade deal doubts. China's stainless steel output in November is seen falling 2% from the previous month to 2.4 million tonnes and could fall further to 2.37 million tonnes in December. Handan, a major steelmaking hub in north China’s Hebei province, will activate an orange alert for heavy air pollution for three days starting from 12:00 CST November 28.
Under the secondhighest pollution warning in China's four-tier system, polluting enterprises including steel mills are required to cut or suspend production, and heavy-duty trucks with lower emission standards are banned from the road. China’s crude steel production dipped for a second straight month to 81.5 million mt in October, according to data from the World Steel Association (Worldsteel) reported. This was 0.6% lower than the same period a year earlier.
The Worldsteel report also revealed that crude steel production across 64 countries decreased 2.8% from a year ago to 151.5 million mt in October, barely changed from September. Inventories of construction steel rebar in China shrank from a year ago for the first time in the second half of this year so far.
Technically market is under fresh buying as market has witnessed gain in open interest by 3.11% to settled at 630 while prices up 60 rupees, now Steellong is getting support at 29150 and below same could see a test of 29050 levels, and resistance is now likely to be seen at 29330, a move above could see prices testing 29410.
US President Donald Trump has signed two bills supporting the Hong Kong protesters into law, and this fueled trade deal doubts. China's stainless steel output in November is seen falling 2% from the previous month to 2.4 million tonnes and could fall further to 2.37 million tonnes in December. Handan, a major steelmaking hub in north China’s Hebei province, will activate an orange alert for heavy air pollution for three days starting from 12:00 CST November 28.
Under the secondhighest pollution warning in China's four-tier system, polluting enterprises including steel mills are required to cut or suspend production, and heavy-duty trucks with lower emission standards are banned from the road. China’s crude steel production dipped for a second straight month to 81.5 million mt in October, according to data from the World Steel Association (Worldsteel) reported. This was 0.6% lower than the same period a year earlier.
The Worldsteel report also revealed that crude steel production across 64 countries decreased 2.8% from a year ago to 151.5 million mt in October, barely changed from September. Inventories of construction steel rebar in China shrank from a year ago for the first time in the second half of this year so far.
Technically market is under fresh buying as market has witnessed gain in open interest by 3.11% to settled at 630 while prices up 60 rupees, now Steellong is getting support at 29150 and below same could see a test of 29050 levels, and resistance is now likely to be seen at 29330, a move above could see prices testing 29410.
