SMU Steel Buyers Sentiment Index: Ready to Bounce

The real news coming out of this week’s flat rolled steel market trends analysis is the jump in the SMU Steel Buyers Sentiment Index when looking at the index as a single data point, as opposed to a three-month moving average, which is our preference. Measured as a single data point, the average among those responding to this week’s flat rolled steel market trends questionnaire was +66, up +11 points from early October, but about average for the second half of the year. Our index took a bit of a respite during the month of October posting a +55 in early October and +61 in the middle of October (just as the mills announced price increases). SMU Publisher John Packard is of the opinion that October was the low end of the market cycle and he expects Sentiment data to be even more optimistic as we enter the New Year.

Despite all the uncertainty in the market, the Steel Market Update Steel Buyers Sentiment Index appears to be holding steady, and at a higher level than at this time last year. 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. Buyers’ attitudes offer some insight into their likely decision-making on such factors as purchasing and inventory levels.