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While the Chinese steel market rallied early this week in response to Beijing’s announcement of stimulus measures and a 0.3% decline in production, our Advance/Decliner Index sunk from 16% to just 4% last week as overproduction from China combined with a global economic slowdown and declining raw material prices resulted in steel pricing weakness across the globe (any reading below 50 means more price cuts were reported than increases).

Our China Index remained at zero for the fourth consecutive week – just the third time in history this has ever occurred – as steel prices continued to decline despite Beijing’s attempts to soothe economic worries with pro-growth promises.

East Asia was also very weak, and pricing in Europe, the US and CIS declined as well, resulting in our Ex-China Index dropping to a 3-year low of 5% versus 19% last week.

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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