Steel prices experienced a slight decline of -0.11%, settling at 46,810. Concerns emerged over financial contagion in China's key property sector, as missed payments by Country Garden renewed worries about major property developers' financial health. However, robust demand for infrastructure projects and reduced supply continued to support the outlook for steel demand. Beijing's economic support measures aimed at stabilizing the housing market and boosting infrastructure projects have contributed to steady resource demand. JPMorgan (NYSE:JPM) noted that despite financial concerns in the property sector, strong infrastructure building in China keeps steel usage high, offsetting weaker residential sales confidence.

In addition, China's crude steel output fell by a sharper-than-expected 4.8% month-on-month in August, reflecting some steel mills scaling back production due to shrinking profit margins. Despite this decline, China's steel output for August was still up by 3.2% compared to the same month in the previous year. India's finished steel exports in August 2023 decreased by 6.4% month-on-month but increased by 5.7% year-on-year, indicating a positive trend. However, India's steel imports from China reached a five-year high in the first four months of the fiscal year.

From a technical standpoint, the steel market witnessed long liquidation, with a 2.99% drop in open interest to 1,620 contracts, accompanied by a -50 Rupee decrease in prices. Steel is currently supported at 46,620, with potential further testing at 46,420. Resistance is likely at 47,070, with a potential breakout leading to prices testing 47,320.