China Materials_ September IP Data_ Healthy Peak Season

Industry Overview * Healthy Peak Season: Production of cement, glass, and coal increased during the peak season, while steel production declined. [doc id='1'] * Property Market: New property starts decreased by 20.6% YoY in September, GFA sold declined by 11.2% YoY, and property completions fell by 31.5% YoY. However, client visits and property sales in multiple cities saw YoY increases during the National Day Holiday. [doc id='1'] * Fixed Asset Investment (FAI): FAI increased slightly to +3.4% YoY in September, with highway investment up 0.1% YoY and railways growing 23.9% YoY. [doc id='2'] * Steel Production: Crude steel output decreased by 1.1% MoM and -6.1% YoY in September, but domestic steel apparent consumption declined by 5.6% YoY and improved by 0.8% MoM. [doc id='2'] * Cement Production: Cement production increased by 6.9% MoM and -10.3% YoY in September, with shipments recovering due to better demand in the peak construction season. [doc id='2'] * Aluminum Production: Aluminum production increased by 1.2% YoY in September but decreased by 2.1% MoM. Higher production was driven by capacity resumption in Sichuan and Guizhou. [doc id='3'] * Coal Production: Coal production increased by 4.5% MoM to 414mt in September and grew by 4.4% YoY. [doc id='4'] * Glass Production: Glass production increased by 8.5% YoY and 4.3% MoM in September, but overall glass supply remained high, and demand stayed muted. [doc id='5'] Key Takeaways * Construction Sector: The construction sector saw a rebound in demand, leading to increased production of cement, glass, and coal. However, steel production decreased, possibly due to lower demand from the construction sector. [doc id='1', '2', '4', '5'] * Property Market: The property market remains weak, with new starts and completions decreasing. However, there are signs of improvement in client visits and property sales. [doc id='1'] * Infrastructure Investment: Infrastructure investment, particularly in railways, is growing, which could support economic growth. [doc id='2'] * Aluminum Production: Aluminum production is expected to continue increasing, driven by capacity resumption in Sichuan and Guizhou. [doc id='3'] * Coal Production: Coal production is increasing, which could support energy security and economic growth. [doc id='4'] * Glass Production: Glass production is increasing, but demand remains weak, leading to downward pressure on prices and margins. [doc id='5']