The June headline score, which measures expectations for new domestic and export orders, fell to 15.92, a drop of 31.06 points from May. The highest score possible is 100. Scores above 50 indicate expectations of increases and expansion; scores below 50 indicate expectations of decreases and contraction.

It’s the weakest reading since February 2015 and the third consecutive monthly decline since March, when the index measured 89.42 points.

"With steel prices in China on a decline since the start of May, many steel buyers are sitting on the sidelines waiting for clearer price directions before committing," said Paul Bartholomew, senior managing editor of steel and raw materials for S&P Global Platts.

"This is putting even more pressure on prices. Also, the outlook for new orders is even weaker now than it was late last year when steel prices reached a nadir," he said.