Weak property investment and slower infrastructure fixed-asset investment (FAI) in 2023 will put pressure on China’s steel and cement market fundamentals, Fitch Ratings says in its 2023 sector outlook report. China steel’s demand is largely driven by construction, but manufacturing also accounts for around 30% of steel demand. We expect stable manufacturing FAI growth in 2023 (10M22:10%), but such growth is unlikely to offset a slowdown in construction activity. As a result, we expect pressure on steel’s average selling price (ASP) and cautious production volume. Still, we think margins will improve in 2023 on lower ... (full story)