SMU Steel Buyers Sentiment Index: Price Hikes Giving Attitudes a Lift?

Rising steel prices may be giving a lift to industry attitudes. Steel Market Update’s latest Steel Buyers Sentiment Index shows an eight point increase in Current Sentiment and an 11 point increase in Future Sentiment. While a single week’s results can’t reliably predict a new trend, the uptick is a notable change from sentiment data that has been generally declining for the past two years.

Domestic flat rolled producers have announced three price increases in the past month totaling $120 per ton. SMU data indicates the mills are collecting at least part of the increase. Nucor also increased plate prices late on Friday by $40 per ton. If they succeed in reversing the year-long downtrend in steel prices, industry sentiment may rebound, as well. Producers and distributors are hoping for relief from the margin squeeze caused by the 40 percent decline in steel prices since mid-2018.