Chinese steel production reached record levels in March 2017. While steel mills churned out as much as possible to take advantage of high Chinese steel prices, this same glut is pushing prices lower as demand is not keeping pace. The rally in prices has faded since mid-March. Prices have fallen by more than 15% since their February highs.

In April, Chinese steelmaker Baoshan Iron & Steel announced that it would cut prices for its steel products—the first cut in ten months.