Morning Bites

🏗China’s excavator sales rose 14% YoY in September, including domestic and export deliveries, vs. the 19% YoY increase in August, per CCMA data. Specifically, domestic sales grew 7% YoY last month, but remained 29% below the September 2021 levels

Although China’s property sector remains in a deep downturn, strong domestic excavators sales (+16% YoY in 9mo26) 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 (which was 3% lower YoY in 8mo26, 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