Morning Bites

🏗China’s preliminary excavator sales were down 2% YoY in December (domestic + export), decelerating from the 37% YoY drop in November, according to the CME estimates. Domestic sales (a key indicator of construction activity) are expected to be up 27% YoY, reversing from the -48% YoY in November, mainly due to the low base effect (the figure is still ~50% lower than the December 2021 level). Meanwhile, the new potential stimulus for the economy announced by Beijing might add support to local construction activity and bolster the demand for industrial metals (e.g. steel, copper and aluminium) in 2024, we believe

🛒Japanese consumers have agreed to pay a USD 90/t aluminium premium in 1Q24, Reuters reports. The figure is 7% lower than the 4Q23 premiums, but 5% higher YoY. According to sources involved in the pricing talks, the premium is lower QoQ, reflecting slow local demand and a buildup in the metal’s inventory

#steel #aluminium
https://metals-wire.com/news-reports