Steellong : Technical View : 27.11.2019
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Steellong on ICEX settled down -0.97% at 27600 as fears of tight supply eased amid favourable environmental conditions. The northwest province of Shaanxi withdrew its heavy pollution alert, after top steelmaking province Hebei lifted its second-level smog alert. Top trade negotiators from China and the United States held a phone call on Tuesday morning, China's Commerce Ministry said, as the two sides try to hammer out a preliminary "phase one" deal in a trade war that has dragged on for 16 months.
Steel consumption in north China has yet to show a significant decline, with demand releasing steadily in the south as construction sites stepped up operation before the Chinese New Year holiday. An estimated 75,000 mt of stainless steel production will be impacted as a large stainless steel producer in east China commenced annual maintenance on November 21, according to sources.
The company has an annualised capacity of 2 million mt. Operation of the integrated RKEF
production line will not be affected during the regular overhaul. Social inventories of hot-rolled coil (HRC) in China trended lower for a sixth straight week, as demand ramped up further after prices of ferrous futures jumped on the issuing of smog alerts across northern regions and mine accidents. Data showed that stocks of HRC across social warehouses decreased by 4.7% from a week ago to 1.77 million mt as of Thursday November 21.
Technically market is under long liquidation as market has witnessed drop in open interest by -13.53% to settled at 684 while prices down -270 rupees, now Steellong is getting support at 27460 and below same could see a test of 27310 levels, and resistance is now likely to be seen at 27810, a move above could see prices testing 28010.
Steel consumption in north China has yet to show a significant decline, with demand releasing steadily in the south as construction sites stepped up operation before the Chinese New Year holiday. An estimated 75,000 mt of stainless steel production will be impacted as a large stainless steel producer in east China commenced annual maintenance on November 21, according to sources.
The company has an annualised capacity of 2 million mt. Operation of the integrated RKEF
production line will not be affected during the regular overhaul. Social inventories of hot-rolled coil (HRC) in China trended lower for a sixth straight week, as demand ramped up further after prices of ferrous futures jumped on the issuing of smog alerts across northern regions and mine accidents. Data showed that stocks of HRC across social warehouses decreased by 4.7% from a week ago to 1.77 million mt as of Thursday November 21.
Technically market is under long liquidation as market has witnessed drop in open interest by -13.53% to settled at 684 while prices down -270 rupees, now Steellong is getting support at 27460 and below same could see a test of 27310 levels, and resistance is now likely to be seen at 27810, a move above could see prices testing 28010.