SMU Steel Buyers Sentiment Index Shows Signs of Worry

The attitudes of steel buyers and sellers, as measured by this week’s SMU Steel Buyers Sentiment Index questionnaire, are slightly less optimistic than they were at the beginning of October as the market waits for a turnaround in the decline in steel prices.

The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current Index), as well as three to six months into the future (Future Index). Results are posted as both a single data point and as a three-month moving average, which smooths out the numbers and provides a clearer view of the trend. Any reading above zero (+) indicates those responding to SMU’s survey are optimistic about the markets. When numbers go negative (-), this represents a pessimistic group of buyers and sellers. In its history, the index has ranged from lows of -85 (March 1, 2009) to as high as +78 measured earlier this year.