Morning Bites (part 1)

🔗CISA mills' daily crude steel production during early October was 2.08mnt, a 0.8% growth from the previous ten days (but a 1.2% decline YoY). Meanwhile, local steel inventories grew 7.3% over the same period (+0.3% YoY). Although the output declined for the 3rd consecutive 10-day period, Chinese steel production on a YTD basis was still +2.7% YoY, per CISA data. Hence, considering Beijing’s intention to cap national steel output below the 2022 levels, we might see tighter supply later in 4Q23. In our view, more production restrictions materialising would be supportive for steel prices. To recap, China represents ~57% of global steel output

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