SMU Steel Buyers Sentiment Index: Year Ends Less Upbeat Than it Began

The SMU Steel Buyers Sentiment Index ended the year on a “down” note as our Current Sentiment Index, as measured this week as a single data point, was the lowest reading we have seen over the past two years. When viewed as a three-month-moving average, which helps smooth out the data and provide a clearer view of the trend, we again saw a weakening in our index when compared to year-ago levels. Don’t get us wrong, our Sentiment Index is firmly in the “optimistic” segment of the Index. However, the results are not as optimistic as they were at this time last year and this is creating some concern as to what is in store for the industry in the year ahead.

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).