China’s macro indicators showed a y-o-y improvement in the first quarter (Q1, January-March) of 2024, as per data tracked by BigMint. Performance in key parameters like GDP and industrial production grew y-o-y but realty did poorly. Importantly, China’s crude steel production, after surprising markets in the first two months, showed a decline of 1.90% to around 256.55 million tonnes (mnt) in Q1, which actually helped to deplete inventory and ease mill’s losses. The production drop was goaded by lack of domestic demand from the key driver, real estate. In such a scenario, a sustained increase in output would obviously have created an inventory glut and gnawed away at prices and margins.
