China’s steel market is not collapsing despite the property downturn. Instead, demand is stabilising at a lower level as manufacturing, exports and new energy sectors gradually replace construction-driven demand. This is not a demand collapse, it’s a structural shift from property to industrial and export-driven demand. What’s Really Happening The sharp drop in construction activity has clearly hurt steel demand: Property-related steel (like rebar) has fallen significantly Construction’s share of demand is shrinking But the broader market tells a different story: Total steel demand is only slightly below past peaks Manufacturing, shipbuilding and energy transition sectors are absorbing demand Exports are acting as a key buffer Instead of a sudden crash, the industry is entering a long plateau . Why This Matters The market had expected a sharp collapse but reality is more gradual: Demand is declining slowly, not falling off a cliff China is shifting from construction-led growth to ...
Singapore’s manufacturing sector showed mixed performance in February, with headline output edging down 0.1% year-on-year, weighed by a sharp contraction in the biomedical cluster.
Biomedical Decline Masks Underlying Strength
Data from Singapore’s Economic Development Board (EDB) revealed that biomedical output plunged 27.3% YoY, significantly dragging overall manufacturing performance.
However, excluding this volatile segment, manufacturing output actually grew 3.9%, indicating underlying resilience in core industrial activity.
Electronics Sector Provides Support
The electronics cluster recorded growth, offering a key pillar of support amid broader weakness.
In contrast, most other major clusters reported declines in output, suggesting uneven recovery across the sector.
Monthly Contraction Signals Near-Term Weakness
On a month-on-month basis, the data points to short-term softness:
- Overall output fell 7.2% (seasonally adjusted)
- Excluding biomedical: down 9.4%
This suggests that momentum slowed significantly in February, potentially reflecting softer external demand or production volatility.
Outlook: Volatility Likely to Persist
Singapore’s manufacturing sector remains highly sensitive to global demand cycles, particularly in electronics and pharmaceuticals.
The sharp divergence between biomedical and non-biomedical output highlights the sector’s volatility, which could continue to distort headline figures in the near term.
Investor Takeaways
- Singapore manufacturing output declined 0.1% YoY, mainly due to a 27.3% drop in biomedical production.
- Excluding biomedical, factory output grew 3.9%, indicating underlying strength.
- The electronics sector remains a key growth driver.
- Month-on-month contraction (-7.2%) signals short-term weakness in industrial activity.
- Investors should focus on core manufacturing trends excluding volatile segments for a clearer outlook.
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