Morning Bites

🏗SteelOrbis sees China’s preliminary excavator sales down 17% YoY in December (domestic + export), vs. the 16% YoY increase in November. Of note, SteelOrbis expects domestic excavator sales to drop 32% YoY, after the 3% YoY growth in November. Overall, potentially low domestic results imply no short-term recovery in the depressed Chinese real estate segment. Such development would keep weighing on China’s demand for industrial metals (particularly for steel), but recent easing of local Covid restrictions might limit the negative effect

📈Russian gold output was up 9.1% YoY in November, after the 19.1% YoY increase in October, according to Rosstat. Furthermore, 11mo22 production of the yellow metal grew 1.8% YoY. Hence, we reiterate our view that the ongoing production recovery (since 1H22) is an adverse factor for gold prices. Of note, Russia accounted for ~9% of the world's gold mine output in 2021

#steel #gold
https://metals-wire.com:3000/news-reports