Morning Bites (part 2)

🔗CISA mills daily crude steel production during late May was 2.10mnt, a 6.7% drop from the previous ten days (-9.7% YoY). At the same time, local steel inventories declined 4.0% (-12.9% YoY). This was the fourth consecutive fall for ten-day periods (starting from April 20), likely associated with CISA’s call to lower China’s production amid low steel prices. In addition, some mills in Tangshan (~13% of China’s steel output) have recently received a municipal notice not to exceed the 2022 production level. Such dynamics, if they persist, are likely to be favorable for the steel prices, in our view

#steel
https://metals-wire.com:3000/sector/Steel