SMU Steel Buyers Sentiment Index Jumps

The Current Sentiment reading is within 4 points of its all time high point which was achieved at the beginning of August 2014. One year ago Sentiment was reported as being +40. The lowest reading was a -85 recorded in March 2009.

Our three month moving average (3MMA) for our Steel Buyers Sentiment Index is at an all time high of +61.83. At the beginning of August, Current Sentiment 3MMA was +61.33. We had a small dip in our 3MMA during late August and early September but the negative trend line has been broken and we anticipate we will continue to achieve new even more optimistic highs in the coming weeks.

As SMU collected data which makes up our Index, we heard from a number of those responding to our queries. A service center reported that, “Things have really picked up.” A distributor who handles plate told us, “Steel plate market holding up well.”

From a manufacturing company we heard, “Spotty…some markets are sideways, some slight improvement and others expanding rapidly.”

Many of our respondents reported that they were supportive of the consolidation efforts by the industry with the ultimate result being a more stable price structure which allows for both service centers and manufacturing companies to focus on their core businesses and not just prices.

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 Sentiment Index Remains at +65

Future Sentiment, which measures how buyers and sellers of flat rolled steel feel about their company’s ability to be successful three to six months into the future, is at +65 which is unchanged from earlier this month and down 2 points from one month ago. At this time last year Future Sentiment was measured as +51.

Below is another interactive graphic, but on our Future Steel Buyers Sentiment Index.

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

About the SMU Steel Buyers Sentiment Index

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, 41 percent were manufacturing companies (down 5 percent from the 46 percent reported in our last survey) and 45 percent were service centers/distributors (up 6 percent from the 39 percent reported in our last survey). The balance of the respondents to our survey are made up of steel mills, trading companies and toll processors involved in the steel business.