SMU Steel Buyers Sentiment: Less Bullish on the Future?

While industry sentiment improved at a double-digit rate in May, as measured by Steel Market Update’s Sentiment Indexes, June has seen more moderate changes in optimism. Current Sentiment increased by a further 7 points in the past two weeks, but Future Sentiment actually declined by 3 points. This leveling of sentiment most likely reflects ongoing concerns about the coronavirus’ effect on steel demand and the reported possibility of a resurgence in COVID-19 infections in the next few months.

Since April 2 when Current Sentiment hit -8, the lowest reading since November 2010, the index has improved by 47 points. The current reading of +39 is still below the average of +48 in the 12 months prior to the pandemic.