Morning Bites

🏗China’s excavator sales rose 14% YoY in July, including domestic and export deliveries, following a 35% YoY increase in June, per CCMA data. Specifically, domestic sales grew 4% YoY, but remained 38% below July 2021 levels

Although China’s property sector remains in a deep downturn, strong domestic excavators sales (+19% YoY in 7mo26) suggest a moderately positive outlook for a recovery in local construction activity, if the dynamics persist. Meanwhile, Beijing plans further cuts to 'excessive' steel output in 2026 (it was down 3% YoY in 1H26, 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

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