Morning Bites (part 2)

🔗Global crude steel output declined 3% YoY to 145mnt in February, broadly in line with January, according to World Steel Association (WSA) data. China’s production (55% of global crude steel supply) fell 3% YoY (-6% YoY in January), while ex-China steel output also slipped 4% YoY. The WSA numbers show that Russian output dropped 3% YoY, while both US and EU production lost 7% YoY last month. Indian output (~9% of global steel supply) continued its growth, adding 6% YoY in February

In our view, China’s fiscal stimulus for 2025, (incl. 5% GDP growth target, and an increase in the 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 (2-5% YoY, per market estimates). These measures might cool surging Chinese steel exports, and support global prices in 2025, we believe

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