SMU Steel Buyers Sentiment Index: Finding Stability

The data from Steel Market Update’s latest market trends questionnaire shows mixed feelings when it comes to Current vs. Future Sentiment. The SMU Steel Buyers Sentiment Index measures how buyers and sellers of flat rolled and plate steels feel about their companies’ ability to be successful both now (Current) and three to six months into the future (Future). Buyers and sellers of flat rolled steel generally remain optimistic about their company’s chances for success. The lower optimistic trend that we were capturing on our Current Sentiment Index 3MMA has returned to the levels seen at this time last year. Looking at the past few months, our Current Sentiment Index appears to have found stability and continues to be within the optimisitc range of the index.

SMU’s Steel Buyers Sentiment Index registered +64 out of a possible +100 this week, down 2 points from mid-June. Calculated as a three-month moving average (3MMA) to smooth out the data, the index dipped slightly to +66.67, just above the low reading of the year of 66.50 recorded in mid-May. The Current Sentiment Index continues to be optimistic, albeit at lower ratios than what we saw earlier this year and for most of 2017. The 3MMA has stabilized after peaking ealier this year at +74.