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Our Advance/Decliner Index rose from a 3-year low of 4% to 23% as our Chinese Index posted a short-lived rebound rising from zero to 25% as announced stimulus as well as a pathetic 0.3% production drop boosted some spot prices early in the week before the rally fizzled out by week’s end (any reading below 50 means more price cuts were reported than increases).

So far this week, spot steel prices in China have already given back these gains due to a combination of a disappointing US jobs report, weak Chinese manufacturing data and the continuation of strict Chinese property market controls, and steelmakers have continued to cut export prices.

Our Ex-China Index also increased from 5% to 23% as Brazilian steelmakers took advantage of the strengthening dollar/real relationship and announced price hikes in an attempt to re-establish more “normal” domestic price premiums, while pricing elsewhere continued to fall.

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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