SMU Data and Models
December 2, 2020
SMU Steel Buyers Sentiment: Solidly Optimistic
Written by Tim Triplett
Steel buyers continue to feel solidly optimistic about their prospects in the weeks and months ahead, though the limited availability of steel is causing widespread concern. As one service center exec commented this week: “The tightness in supply is what will hinder us from being successful. We can’t make a sale if we can’t get steel. It’s ugly out there in the trenches.”
Historically, industry sentiment has correlated fairly closely with the ups and downs in steel prices. That relationship has never been more apparent than this year when the steep upward slope in prices and optimism have closely mirrored each other (see chart).
