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Our Advance/Decliner Index gained for the second straight week, increasing from 26% to 34% (but still below the key 50 level meaning more price decreases were announced than increases) as domestic steelmakers raised sheet prices and Brazilian steelmakers raised steel prices across-the-board due in part to the weakening real against the dollar.  Pricing strength seen in the MENA region last week proved fleeting, while pricing in East Asia weakened on the heels of continued export price cuts out of China.

Our China Index rose from zero to 11% as just one price increase was recorded during the week despite Beijing announcing the second interest rate cut in less than a month.  Spot prices in China have continued downward so far this week, as we think the marketplace is viewing the rate cut as an indicator of a real downturn in the economy – and a negative this time around – rather than a positive.

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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