Economy

Steel Buyers Sentiment Indices Fall

Written by Ethan Bernard

August 31, 2023

SMU’s Current and Future Steel Buyers Sentiment Indices both edged down this week, based on our most recent survey data.

Every other week we poll steel buyers about sentiment. The Steel Buyers Sentiment Indices measure how steel buyers feel about their company’s chances of success in the current market, as well as three to six months down the road. We have historical data going back to 2008. Check our interactive graphing tool here.

SMU’s Current Buyers Sentiment Index stood at +55 this week, down from +57 two weeks prior (Fig. 1). This marks the third consecutive decline and the lowest reading this year.

SMU’s Future Buyers Sentiment Index measures buyers’ feelings about business conditions three to six months in the future. This week, the index dropped to +66 from +71 two weeks earlier (Fig. 2). After briefly rising above +70 at the previous check, we’ll see if this current reading is just a blip, or more of a downward trend.

Measured as a three-month moving average, the Current Sentiment 3MMA slipped to +60.00 vs. +61.50 at the last market check. (Fig. 3). 

This week’s Future Sentiment 3MMA rose to +64.33 from +62.00 two weeks earlier (Fig. 4).

What SMU Survey Respondents Had to Say:

-“Despite the turbulence, we have adapted to the market.”

-“We will be challenged still.”

-“We believe that we can exceed the established sales goals of the company.”

-“The future is cloudy and unclear as of now.”

-“We aren’t expecting pricing to go up anytime soon, so our outlook is positive.”

-“Buyers are now actively reducing their inventory.”

About the SMU Steel Buyers Sentiment Index

The SMU Steel Buyers Sentiment Index measures the attitude of buyers and sellers of flat-rolled steel products in North America. It is a proprietary product developed by Steel Market Update for the North American steel industry. Tracking steel buyers’ sentiment is helpful in predicting their future behavior.

Positive readings run from +10 to +100. A positive reading means the meter on the right-hand side of our home page will fall in the green area indicating optimistic sentiment. Negative readings run from -10 to -100. They result in the meter on our homepage trending into the red, indicating 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. Sentiment is measured via SMU surveys twice per month.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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