Key Market Indicators Looking Up

Steel Market Update publisher, John Packard, traded comments with a financial analysts who was of the opinion that demand was under duress and the future of the steel using markets was in doubt. This does not match our belief based on a review of the SMU Key Market Indicators. We are sharing this report with both our Executive and Premium users (normally it just goes to our Premium clients) as evidence in our conviction that we are in a good steel market environment.

The trends of major key market indicators are the best they have been since Steel Market Update first performed this analysis in January 2010. Data released in January shows that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance is within the band of historically normal. The total of positive and normal has not changed in six months. However, there have been frequent changes in the detail. Trends improved with 83.3 percent of the indicators heading in a positive direction, up from 61.1 percent in October and from 72.2 percent in November. Trends lead the present situation by about four months.