SMU Steel Buyers Sentiment: Firmly Bullish

Steel buyers’ sentiment remains firmly in bullish territory even as carbon steel prices are nearing levels more commonly associated with stainless steel or even aluminum. While some sources continue to fret about the steep downside risk of current high prices, most have gotten over their initial sticker shock and are busy trying to secure enough tons to meet the surprisingly durable demand.

SMU asks steel buyers every two weeks how they view their company’s chances for success in the current environment and how they view their prospects three to six months in the future. SMU’s Current Buyers Sentiment Index stands +72 this week, unchanged from two weeks ago. SMU’s Future Sentiment Index inched up by two points to +63. Both indexes have been in the +60s and +70s for most of the year–showing a huge recovery from the pandemic lows in 2020–and are not far removed from the record highs of +77-78 seen in 2018.