Morning Bites

🏗China’s excavator sales jumped 35% YoY in June (domestic + export), remaining on-trend with the 36% YoY gain in May, per CCMA data. Specifically, domestic sales were up 34% YoY (but still 36% lower than the same period in 2021)

In our view, the 1H26 data suggest bullish prospects for a recovery in local construction activity, if the positive dynamics persist. Meanwhile, Beijing plans further cuts to 'excessive' steel output in 2026 (it was down 4% YoY in 5mo26, after the 4% YoY decline in 2025, per official data). We believe that these two factors might reduce China's surging steel exports, and support global steel prices in the medium term

#steel