Morning Bites

🏗China’s excavator sales rose 14% YoY in November (domestic + export), accelerating from the +8% YoY in October, per CCMA data. Specifically, domestic sales were up 9% YoY (but still -30% vs. the same period in 2021)

In our view, the ongoing recovery in Chinese excavator sales, recorded since mid-2024, indicates that local construction activity is gradually bottoming out. Meanwhile, Beijing plans to further cut 'excessive' steel output in 2025-26 (-4% YoY in 10mo25, per official data). These factors might cool surging Chinese steel exports, and support global steel prices in 2026, in our view

#steel