Morning Bites

🔗China’s crude steel output declined 11% YoY in November, broadly in-line with the 12% YoY drop in October, per NBS data. The recent production decreases were related to Beijing’s plans to cut 'excessive' steel output in 2025 and strictly prohibit new capacity additions in 2025-26. Given the ongoing crisis in the global steelmaking industry, Beijing might introduce additional supply control similar to the measures it imposed in 2016-17, we believe. Although local crude steel supply dropped 4% YoY in 11mo25, per official data, Chinese net exports were still up 7% YoY over the period, weighing on global steel prices

🏢China's property sales decreased 18% YoY in November, after the 20% YoY decline in October; they were 55% lower than in the same month in 2021. Meanwhile, floor space starts decreased a further 28% YoY in November (-73% vs. 2021). Personal mortgage loans also dropped 35% YoY in November (-68% vs. 2021), while property completions were also down 25% YoY

#steel #property