SMU Steel Buyers Sentiment Index: Concerns Still Exist

Despite all the uncertainty on the trade front, demand has stayed strong, and buyers and sellers of flat rolled steel remain optimistic about their chances for success in current and near-term market conditions. The SMU Steel Buyers Sentiment Index, which measures how buyers and sellers of flat rolled and plate steels feel about their companies’ ability to be successful both now and three to six months into the future, was modestly higher this week. However, when looking at the data from a three-month moving average (3MMA), there continue to be concerns about the direction of Sentiment as both Current and Future Sentiment Indexes have been trending lower over the past couple of months.

SMU’s Steel Buyers Sentiment Index registered +67 this week out of a possible +100, down 6 points from early May. Calculated as a three-month moving average (3MMA) to smooth out the data, the index is at +67.17, the lowest reading of the year, though still at an optimistic level.