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As global pricing weakened still further, largely on the back of new record production from China combined with weak economic growth globally, our Advance/Decliner Index plummeted from 31% to 16%, the lowest level since early November (any reading below 50 means more price cuts were reported than increases).

Pricing deterioration in the US, MENA, Europe and the CIS drove our Ex-China Index falling to a six-and-a-half month low of 19% from 38% last week.

Our China Index remained at zero for the third consecutive week – just the fourth time in history this has ever occurred – as steel prices remained under pressure despite Beijing’s reserve requirement rate cut and supportive pro-growth verbiage.  The Chinese steel market remained spooked by a combination of a mid-May flash production report showing yet another record production month in the offing, as well as a 5% plunge in spot iron ore prices which are being equally driven by weakened steel demand.

Our full report provides further thoughts about global steel pricing trends and our outlook as well as implications for steel equities.

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