SMU Steel Buyers Sentiment Index: Future of Greater Concern

Both current and future sentiment among flat rolled steel buyers saw little change in the past two weeks as the market paused to see how the maneuvering on the trade front plays out. In general, buyers’ attitudes remain at optimistic levels but are below year-ago levels, which SMU finds concerning. We are finding a growing skeptisim as buyers and sellers of flat rolled steel deal with higher steel prices, restrictions on foreign steel imports and a tremendous amount of uncertainty associated with President Trump’s trade policies. Steel Market Update’s Steel Buyers Sentiment Index is designed to measure changes in buyers’ attitudes, which offers insight into their likely decision-making.

Current sentiment, measured as a single data point was the same as in mid-March at +66. Measured as a three-month moving average, which helps even out the highs and lows, the Current Sentiment 3MMA dropped by about a point to +69.17. That compares to a peak of 74.17 in April 2017.