SMU Data and Models
January 8, 2021
SMU Steel Buyers Sentiment: Fears of Fall Ahead
Written by Tim Triplett
Current Sentiment among steel buyers, as measured by Steel Market Update’s Jan. 4 questionnaire, saw a small increase, while Future Sentiment saw a small decrease, suggesting that service center and OEM executives feel more confident about their immediate prospects than they do about the uncertainty ahead. As one commented: “We ended 2020 struggling to get enough steel to satisfy customer orders and now we are starting 2021 with margin pressures due to the incredibly high steel prices. It’s a double-edged sword!” Added another: “The issue now is finding steel, and not to over buy, because the cliff to fall off of only gets higher as the numbers ascend.”
Every two weeks, SMU asks steel buyers how they view their company’s chances for success in the current environment as well as three to six months in the future. The Current Sentiment Index increased by two points to a very optimistic reading of +63—up by 71 points from the pandemic-induced low of -8 back in April.
