SMU Steel Buyers Sentiment Index 3MMA Continues to Slide

The first measurement of our Steel Buyers Sentiment Index in the New Year provided us some mixed results. Current Sentiment, which is how steel buyers and sellers feel about their company’s ability to be successful in the current market environment, was measured at +54. This is well within the optimistic range of our Index but down 2 points from two weeks ago. One year ago current Sentiment was +43.

We like to smooth out the numbers in order to better see any trends as they develop. We use a three month moving average (3MMA) which adjusted our Index to +55.83, much lower than the +58.83 we saw at the beginning of December. Looking back at the 3MMA since the beginning of October we have: +61.67 (Oct), +60.17 (Nov), +58.83 (Dec) and now +55.83 (Jan). As you can see the trend over the past 3 months has been optimistic but waning from one month to the next. Sentiment is still well above year ago levels when our 3MMA was +38.33.