Morning Bites

🔗China’s CISA predicts lower domestic steel supply in 4Q23, on the back of energy consumption regulations and measures to protect the environment. The CISA also noted soft domestic demand, as the local real estate sector remains subdued. Overall, the news underpins our view that Beijing might implement more steel production restrictions in late-2023 to keep national steel output no higher than the 2022 levels. On our numbers, to meet this requirement, steel supply for the rest of the year must be ~11% YoY lower, on average. That would be a positive factor for steel prices, if it at least partially materialised

According to the CISA, China’s crude steel consumption fell 1.5% YoY in 9mo23 to 731mnt, while production increased 1.7% YoY to 795mnt. Meanwhile, exports surged 32% YoY to 67mnt over the period

#steel
https://metals-wire.com:3000/sector/Steel