SMU Steel Buyers Sentiment Index Jumps to Record High

Based on our analysis of the most recent flat rolled steel market trends survey conducted by Steel Market Update this week, we continue to find buyers and sellers of steel being very optimistic. The current market index improved to +70 which is the highest (most optimistic) number ever recorded by our Sentiment Index going back to its beginning in late 2008. We believe buyers and sellers are responding to improving pricing fundamentals increasing the value of inventories and making it easier to be successful in the spot markets.

The +70 index reading is for how buyers and sellers feel about their company’s ability to be successful in the current market conditions (today). SMU likes to look at the same data over a three month period (rolling three month moving average) in order to gather a better sense of the underlying trend which has been gaining optimism since the first week of January 2016.