SMU Steel Buyers Sentiment Index: Market's Unsettled

President Trump’s controversial decision to impose a steep tariff on steel imports has clearly unsettled the market and taken a toll on the attitude of many steel buyers. Both current and future sentiment among flat rolled steel buyers declined significantly in the last two weeks, according to the latest Steel Market Update Steel Buyers Sentiment Index. The index measures changes in buyers’ optimism levels, which offers insight into their likely decision-making.

Current sentiment, measured as a single data point, fell 12 points in the past two weeks to +59. Based on a three-month moving average, which smooths out the ups and downs, the Current Sentiment 3MMA dropped to +72.00 from +73.83 in mid-February. While still at optimistic levels, not far off the peak for the index of 74.17 in April 2017, the double-digit decline is significant for an index that usually moves within a very narrow range.