SMU Steel Buyers Sentiment Index Takes Tumble

Buyers and sellers of steel continued to be optimistic about business but less so than a few months ago. Since then Sentiment has been trending lower as the strain of ever lower steel prices, issues regarding demand, lower commodity prices and shrinking margins due to high inventory levels are affecting both buyers and sellers. Today Steel Market Update (SMU) released our Steel Buyers Sentiment Index which measures how those involved in the flat rolled steel industry feel about their company’s ability to be successful in both the current market conditions (Current Sentiment) as well as three to six months out into the future (Future Sentiment).

SMU Steel Buyers Sentiment Index (Current) is +37 down 10 points from what we reported just two weeks ago during the middle of the month of September. This is the lowest reading for Current Sentiment since the first week of March 2014. Sentiment (Current) peaked in the first week of June when SMU reported it at +61. We have been tracking lower very slowly but methodically since then. That is until this week as a 10 point jump is significant. The last jump of this size was between mid January 2015 and the beginning of February (+56 down to +46).