Morning Bites (part 2)

🏗China’s excavator sales are set to decline 14% YoY in 2023 (domestic + export), following the 24% YoY decline in 2022, per CCMA’s (China Construction Machinery Association) estimates. However, export sales are forecasted to gain 10-15% YoY this year. Hence, China’s domestic sales might shrink 33% YoY in 2023, as well as ~17% in 2H23 (vs. -44% YoY in 1H23), on our numbers. As a leading indicator of construction activity, further stagnation in domestic excavator sales, were it to materialise, would indicate the absence of recovery in China’s property sector. This is a potentially adverse factor for the short-term demand for industrial metals (such as steel, aluminium and copper)

#steel
https://metals-wire.com/sector/Steel