SMU Steel Buyers Sentiment Index Sees a 9 Point Drop

We received a number of comments about foreign steel in the comments section during the survey process:

“More and more domestic availability and continued inflows of foreign do not bode well for pricing in the near term.” (Service Center)

“It is hard to project any significant increase in mill prices with the amount of foreign steel now onshore (even with a threat of potential import fines).” (Wholesaler/Distributor)

While a trading company expressed their concerns in this way, “Requests for imports remain strong and domestics are pushing up price increasing the spread,” But went on to say, “May also see that dreaded A word again by end of year.” The “A” word reference is to the word allocation.

Sentiment is +17 points higher than what we had measured one year ago.

Our 3 month moving average (3MMA) came in at +60.83 down slightly from the +61.33 measured at the beginning of the month (+61.33 is the highest 3MMA recorded).

Below is an interactive graph of our Sentiment Index (open white space if you are not on our website). In order to see and manipulate the graph you will need to be logged in on the SMU website. Contact us at info@SteelMarketUpdate.com or 800-432-3475 if you need assistance.

{amchart id=”109″ SMU Steel Buyers Sentiment Index- Survey}

Future Steel Buyers Sentiment Index

SMU Future Steel Buyers Sentiment Index was also down as it fell 2 points to +67. Future Sentiment measures how buyers and sellers feel about their company’s ability to be successful three to six months in the future.  Future Sentiment is down 7 points from one month ago but is up 18 points compared to one year ago.

Below is another interactive graphic, this time of our Future Steel Buyers Sentiment Index.

{amchart id=”108″ SMU Steel Buyers Future Sentiment Index- Survey}

About the SMU Steel Buyers Sentiment Indices

SMU Steel Buyers Sentiment Index is a measurement of the current attitude of buyers and sellers of flat rolled steel products in North America regarding how they feel about their company’s opportunity for success in today’s market. It is a proprietary product developed by Steel Market Update for the North American steel industry.

Positive readings will run from + 10  to + 100 and the arrow will point to the right hand side of the meter located on the Home Page of our website indicating a positive or optimistic sentiment.

Negative readings will run from -10 to -100 and the arrow will point to the left hand side of the meter on our website indicating negative or pessimistic sentiment.

A reading of “0” (+/- 10) indicates a neutral sentiment (or slightly optimistic or pessimistic) which is most likely an indicator of a shift occurring in the marketplace.

Readings are developed through Steel Market Update market surveys which are conducted twice per month. We display the index reading on a meter on the Home Page of our website for all to enjoy.

Currently, we send invitations to participate in our survey to almost 600 North American companies. Our normal response rate is approximately 110-170 companies. Of those responding to this week’s survey, 45 percent were manufacturing companies (up 3 percent from the 42 percent reported in our last survey) and 42 percent were service centers/distributors (down 3 percent from the 45 percent reported in our last survey). The balance of the respondents are made up of steel mills, trading companies and toll processors involved in the steel business.