SMU Steel Buyers Sentiment Index: A Bottoming of the Cycle?

The Steel Market Update (SMU) Steel Buyers Sentiment Index market cycle appears to have bottomed as buyers and sellers of flat rolled steel were slightly more optimistic than what we collected at the beginning of the month. We measured the single data point for those responding to our flat rolled steel market trends questionnaire this week as +61, up +5 points from early October, which was the lowest reading of this calendar year. What has been interesting about 2017 is our Sentiment Index has reached higher highs earlier this year than what we measured last year. The Index also appears to be bottoming at slightly more optimistic readings than what we saw last year, as well (see graphic below).

If the seasonality of the trend continues, we should see an uptick in our Current Sentiment Index into 2018. The key is most buyers and sellers of flat rolled steel remain optimistic about their company’s ability to be successful in the current market environment, as well as three to six months into the future, according to data from this week’s Steel Market Update market trends questionnaire.