SMU Steel Buyers Sentiment Index Beginning to Trend Lower

Buyers and sellers of steel are beginning to feel the strain of reduced demand (whether seasonal or otherwise), stable to falling steel prices and a very competitive service center spot market which impacts distributors margins. The bottom line is those actively involved in the flat rolled steel industry in the United States and Canada are less optimistic about their company’s ability to be successful in the current market than they were just two weeks ago.

Steel Market Update (SMU) announced this afternoon that our SMU Steel Buyers Sentiment Index dropped by 10 points since the beginning of November. The SMU Sentiment Index was reported at +52 which is well within the optimistic range but down 16 points from the peak of the cycle achieved on August 7, 2014. Any reading in the positive (+) position indicates an optimistic view of the market. The higher the reading the more optimistic the industry is about their company’s ability to be successful in the current market environment.