Morning Bites

🏗China’s excavator sales increased 18% YoY in March (domestic + export) from a low base, after the 53% YoY gain in February, according to CCMA data. Specifically, domestic sales jumped 29% YoY (but were still 73% lower than for the same period in 2021). Overall, upbeat Chinese excavator sales dynamics might indicate improving sentiment around local construction activity in 2025

In our view, China’s new fiscal stimulus for 2025, (incl. the 5% GDP growth target, 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