Morning Bites (part 2)

🔗CISA mills' daily crude steel production during late October was 1.92mnt, a 5.7% decline from the previous ten days and a 5.2% drop YoY. Meanwhile, local steel inventories decreased 16.6% over the same period (-16.4% YoY). Although the output declined for the 5th consecutive 10-day period, Chinese steel production on a YTD basis was still up 2.3% 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. However, to meet the supply cap, the output for the rest of the year must be on average ~12% YoY lower. In our view, any further production restrictions would be supportive for steel prices. China represents ~57% of global steel output

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