Morning Bites

🔗Global crude steel output declined 2% YoY in February to 142mnt, after the 7% drop YoY in January, World Steel Association (WSA) data show. China’s production (~50% of global crude steel supply) decreased 4% YoY, while world ex-China output also inched down 1% YoY, per the WSA. Specifically, the WSA numbers show that Russian and EU output dropped 10% and 4% YoY, respectively, last month. Meanwhile, US production increased 6% YoY and Indian output (~10% of global steel supply) gained 8% YoY (also up 10% YoY in 2mo26)

Given the ongoing crisis on the global steel market, Beijing might introduce additional strict supply-control measures, similar to the 2016-17 reform (when >100mnt steelmaking capacities were removed), we think. New reform, if announced, could trigger a recovery in global steel prices in 2026

#steel