Morning Bites

🏗China’s preliminary excavator sales were down 26% YoY in July (domestic + export), vs. the 24% YoY decline in June, according to CME estimates. In particular, domestic sales (the leading indicator of construction activity) are set to be 49% lower YoY, following the 45% YoY drop in June. Meanwhile, the CCMA forecasts a drop of some 14% YoY in the country’s total 2023 excavator sales, which implies a ~17% YoY reduction in their local consumption in 2H23 (vs. -44% YoY in 1H23). Were this trend to persist, it would indicate no recovery in China's depressed real estate sector. However, Beijing has recently signalled new stimulus for the local economy. In our view, this might add support to construction activity and the demand for industrial metals (e.g. steel, copper and aluminium)

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