SMU Steel Buyers Sentiment Index: Waning Optimism

Steel Market Update’s Steel Buyers Sentiment Index, which has been on a downward trajectory for months, has shown no signs of changing direction so far in 2019. The SMU Index continues to be well within the “optimistic” range, but is not as high as what we saw one year ago and is flat compared to where we were in fourth-quarter 2018.

John Packard, Steel Market Update President and CEO, says, “Historically, we see the first quarter of the New Year as being the point when those involved in the flat rolled and plate markets are the most optimistic as they look at the year ahead of them. This year, concern over the slide in spot pricing on flat rolled and maybe even the stock market have taken a bit of the zing out of the step of those who buy and sell steel. Demand appears to be fine. Buyers are nervous and uncertainty leads to lower sentiment.”