SMU Buyers Sentiment Index Stable at +27

According to the results to our most recent SMU steel survey, those actively involved in the buying and selling of steel are mildly optimistic about their company’s ability to be successful in the current market conditions. The Steel Market Update (SMU) Steel Buyers Sentiment Index was measured at +27 which is unchanged from the middle of January but well below the +43 measured during the first week of February 2012. Any reading above zero is considered to be in the optimistic range of our index with a +49 being the most optimistic reading measured since our index began in November 2008. That reading was achieved during the middle of January last year.

During the survey process Steel Market Update found a cautiously optimistic attitude and this was found in other segments of our survey results as well. The vast majority of our survey respondents believe demand for their products to remain the same as it has been with 61 percent of the respondents reporting that way. We did find a small glimmer of hope with 25 percent of the respondents reporting improving demand and the smallest group – 14 percent – believing demand for their products was shrinking at this time.