SMU Steel Buyers Sentiment: Worried About 1Q 2019

The attitudes of steel buyers and sellers, as measured by this week’s SMU Steel Buyers Sentiment Index questionnaire, show mixed feelings in the marketplace following the midterm elections. Current Sentiment was an impressive +65 measured as a single data point. Future Sentiment dropped -7 points to +58. Both are well within the “optimistic” side of the equation, but the three-month moving average, compared to one year ago, does not lead us to think the market is as strong as some might want us to believe.

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 (3MMA), which smooths out the numbers and provides a clearer view of the trend.