Morning Bites

🔗CISA mills daily crude steel production in early-April was 2.08mnt, up 4.2% from the previous ten days, but 5.5% lower YoY. Per CISA data, local production slid 6.4% YTD (through 10 April). Meanwhile, local steel inventories rose 5.8% over the period, and were 9.2% higher YoY

Given the ongoing weakness in the global steel market, we believe Beijing might continue to tighten supply on a gradual basis, even though the current five-year plan lacks explicit targets for capacity cuts. After a surge in exports in 2023–25 that weighed on global prices, further gradual supply-side measures could help rebalance the market and support steel prices in 2026

China accounts for >50% of global steel supply

#steel