Morning Bites (part 2)

🏗 China has unveiled new economic stimulus to help hit the 5% GDP growth target in 2024, Bloomberg reports, citing PBoC Governor Pan Gongsheng. Specifically, China is to cut its reserve requirement ratio (RRR) 0.50% to 9.50%, in addition to a potential 0.20-0.25pp decrease in loan prime rate (LPR, which currently stands at 3.35%)

Furthermore, Beijing has announced a support package for the depressed local property sector, including lowering borrowing costs on as much as USD5.3tn of mortgages and easing rules for second-home purchases

Although the new Chinese stimulus is still a long way removed from previous "bazooka" measures, it is likely to add positive impetus to the stressed steel market in 4Q24. We believe, however, that more actions would be required for a full-scale recovery in construction activity

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