SMU Steel Buyers Sentiment: Unfailingly Optimistic

By most measures, the steel market is in transition. Demand remains strong, with notable exceptions in sectors such as automotive. Supplies remain tight, but not nearly as tight as earlier in the year thanks to surging imports. Mill lead times are still highly extended versus historical averages, but are a week or two shorter than they were two months ago. Steel prices are plateauing, if not beginning a protracted downturn. And the economy continues to deal with the COVID crisis. Yet despite all that volatility and uncertainty, steel buyers remain unfailingly optimistic.

Steel Market Update polls service center and manufacturing executives every two weeks and asks how they view their chances of success in the near and longer term. SMU’s Current Buyers Sentiment Index moved up five points to a reading of +83 on Sept. 30, a single point below its all-time high set on Sept. 2, suggesting buyers have never felt better about their opportunities. No doubt that has much to do with steel prices, which remain near historical highs.