SMU Steel Buyers Sentiment Index Improves

The SMU Steel Buyers Sentiment Index saw both the current and future indices as slightly more optimistic than what Steel Market Update reported during the middle of October. Current Sentiment was measured at +62, up +3 points from our last analysis. Future Sentiment at +65 improved by +12 points from what we reported two weeks ago. Sentiment is defined as how buyers and sellers of steel feel about their company’s ability to be successful in the current market, as well as looking three to six months into the future.

The real story is Current Sentiment. When viewed based on a rolling three-month moving average (3MMA), it continued to be less optimistic than at any point in time over the past 12 months. Current Sentiment 3MMA is +63.00, which continues to be optimistic, but has slid almost 10 points from February’s high point for the year (+73.83). As you can see by the graphic below, Current Sentiment is essentially the same as it was one year ago at this time.