SMU Steel Buyers Sentiment: Surprisingly Optimistic

Given all the contentious election rhetoric and concerns over the spread of COVID, industry sentiment, as measured by Steel Market Update, remains surprisingly upbeat. SMU’s Current Sentiment Index saw a 12-point jump since the beginning of October, reaching its highest reading since May 2018.

Every two weeks, SMU asks steel buyers how they view their company’s chances for success in the current environment. The Current Sentiment reading jumped to +68 this week, up from +56 early in the month. Compared with the first week of April, when the market was in shock over the coronavirus and the index hit a 2020 low of -8, that’s a 76-point improvement. Current sentiment today is twice as optimistic as it was at this time last year when concern over sub-$500 hot rolled steel prices drove the index to a lowly +32.