OUTLOOK-India steel futures seen flat-to-higher on demand

MUMBAI, April 6 (Reuters) – India’s steel futures are expected to trade in a range with a positive bias this week on hopes of improved demand outlook, analysts said.

“This week we expect steel prices to be trading with higher bias amid hopes on demand recovery,” said Vishal Maniyar, metals analyst with Karvy Comtrade.

JSW Steel Ltd (JSTL.BO: Quote, Profile, Research), India’s No. 3 producer of the alloy, said on Monday its crude steel output in the Jan-March quarter rose 11 percent to 1.1 million tonnes, while long products grew by half to 0.13 million tonnes. See [ID:nBMB004977]

State-run producer Steel Authority of India Ltd (SAIL.BO: Quote, Profile, Research) said last week said it is targeting production of 12 million tonnes of saleable steel for 2009/10 and expects to post revenue of 400 billion rupees ($7.9 billion) in the fiscal year. See [ID:nBOM336309]

The most-traded May contract NSTK9 was 1.03 percent lower at 21,100 rupees per tonne at 6:26 p.m., after having gained 4 percent in the last week.

“We expect some upside in steel technically,” said Vibhu Ratandhara, an analyst with Bonanza Commodities in Mumbai.

“We recommend buying at support levels,” added Maniyar.

“Supports are pegged at 20,400 rupees then 20,050, with resistances at 21,450 then 22,100,” said Maniyar.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

Source: http://in.reuters.com/article/domesticNews/idINBOM18773020090406

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