MUMBAI (Commodity Online): NCDEX steellong futures are trading in the red on Wednesday afternoon. Current month January contract is trading at Rs 33860, down 0.94% as of 03:15 PM IST. Open Interest stands at 20010 with an intraday high of Rs 34380 and low of Rs 33810. February month contract is down by 0.64%
The government decision to hike export duty on Iron-re began to show its effects with the prices climbing about $1/tonne. India is one of the largest producers of Iron-ore. General sentiment in the steel market is negative and the price rise is best seen as an effect of higher export duty rather than increased demand.
The Steel Authority of India (SAIL) reported that it will benefit due to a decline in imported coking coal prices for the Jan-Marc quarter. Prices will be lower by around 20% and will help boost the company's profit margins which have been under considerable strain of late.
Steel long technical target by Geojit Comtrade for Jan 11, 2012 – Wednesday
NCDEX Steel Long January : Dips to Rs 33600/Rs 33500 could target Rs 34500.
S1: Rs 33500 S2: Rs 33000 R1: Rs 34500 R2: Rs 34800.
