SMU Data and Models
October 6, 2016
SMU Steel Buyers Sentiment Index Plunges
Written by John Packard
Buyers and sellers of flat rolled steel are becoming less enthusiastic about their company’s ability to be successful both now and into the near future. SMU Steel Buyers Sentiment Index has been steady decline since peaking with an all time high of +71 in early July 2016. Based on our latest market trends analysis Current Sentiment is at its lowest point at +43 since the middle of December 2015.
We are attributing much of the change to a less optimistic Sentiment trend to the erosion we have seen in flat rolled pricing over the past few months. We are also seeing more competitive pressures within the service center segments of the industry as distributors fight over the orders that are available and also attempt to remove higher cost inventories.
