Morning Bites (part 1)

🏗China’s excavator sales were flat YoY in April (domestic + export), after the -2% YoY in March, according to the CCMA data. The figure was broadly in line with the CME estimates, with domestic sales still being materially below the 2021 level (-60% vs. April 2021). Although this indicates that there is still no looming recovery in China's construction sector, Beijing is considering the state purchasing unsold real estate, according to Bloomberg. As per market participants, the measure might require at least CNY 1-2tn (USD ~140-280bn); unsold inventories now stand at 3.6bn sqm, with an estimated cost of CNY ~7tn. In our view, this might add support to local construction activity and, hence, the demand for industrial metals in 2024

To recap, China accounts for 52% of global steel consumption, and for 57% and 61% of world Cu and Al demand, respectively

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