India steel futures seen recovering

The tone is still bullish in steel on the back of rising demand and tight supply,said Somnath Dey,vice-president with Religare Commodities.

Resistance is placed at 26,100 rupees,while support is at 24,900 rupees,said Dey.

Steel contracts last week fell to their lowest since Sept. 23.

The benchmark iron ore index rose for the fifth session to its highest level in nearly two months,buoyed by demand from top buyer China as steel mills restart production after state-imposed curbs.

Reviving domestic demand was reflected in rising sales of steel makers,which are expected to support prices of the alloy.

Demand for the alloy tends to go up after the monsoon,as construction activity picks up after the rains.

India’s No. 3 producer,JSW Steel raised products by 3 percent across the board from Oct. 1,citing rising cost of raw material and iron ore availability.