Morning Bites

🏗China’s excavator sales jumped 53% YoY in February (domestic + export) from a low base, after the 1% YoY growth seen in January, according to CCMA data. Specifically, domestic sales roughly doubled YoY (but were still down 52% vs. 2021 level). We remind readers that the upcoming March data is the most seasonally important print for Chinese excavator sales, and might provide insight into the prospects for the local property sector recovery in 2025

In our view, China’s new fiscal stimulus for 2025, (incl. 5% GDP growth target, and an increase in official budget deficit from 3% to 4%, etc), could spur recovery in the Chinese real estate sector, which started to gradually bottom out in 2H24. Furthermore, Beijing plans to cut 'excessive' steel output in 2025 (up to 2-5% of China’s 2024 supply, per market estimates). Overall, these measures might cool surging Chinese steel exports, and support global steel prices in 2025, we believe

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