Morning Bites

🏗China’s excavator sales rose 19% YoY in August, including domestic and export deliveries, following a 14% YoY increase in July, per CCMA data. Specifically, domestic sales grew 4% YoY, but remained 35% below July 2021 levels

Although China’s property sector remains in a deep downturn, strong domestic excavators sales (+17% YoY in 8mo26) 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 7mo26, 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