Motilal Oswal Financial Services, the demand for steel in India is anticipated to increase starting on September 23 as new projects begin to take shape and building activity ramp up after the rainy season. We anticipate an increase in steel prices on the export market in the coming weeks as a result of China's stimulus measures, which are also anticipated to drive up prices for ferrous metals on the global market.
The Indian domestic consumption narrative is still strong due to the government's emphasis on infrastructure, record public and private sector capital expenditures, and increased demand for consumer durables and autos. India is anticipated to take over 40% of the metal offtake that China is anticipated to lose over the next ten years.
China announced various stimulus measures this week to improve the mood in the real estate market, including lowering the minimum down payment and renegotiating mortgage rates for first-time homebuyers. The real estate sector's collapse has been effectively masked by the Chinese government's efforts, which have improved weekend sales.
Over the weekend, new home sales in Beijing totaled more than 1,800 units, down from 3,100 units in August 23, while second-hand home sales soared by more than 100% to 1,200 units. The Chinese government has made a number of measures to strengthen the emotions in both ferrous and non-ferrous metals, which have improved week over week.