SMU Survey: Buyers Sentiment Indices Fall

SMU’s Current Buyers Sentiment Index stood at +63 this week, inching down from +64 two weeks earlier (Figure 1). Current sentiment has not gotten a bump so far from the tentative agreements reached between United Auto Workers union and the Detroit-area automakers.

SMU’s Future Buyers Sentiment Index measures buyers’ feelings about business conditions three to six months in the future. This week, the index tumbled 10 points from our previous market check to +66 (Figure 2). This is the first time it’s fallen below +70 since the middle of September.

Measured as a three-month moving average, the Current Sentiment 3MMA rose to +59.33, up from with +58.33 two weeks earlier. (Figure 3). 

This week’s Future Sentiment 3MMA decreased to +71.17 from +72.00 at the previous market check (Figure 4).

What SMU Respondents Had to Say:

“(Our company will be successful in today’s market) as long as the economic landing isn’t too bumpy.”

“Customers are pushing out orders.”

“With auto coming back, buyers are willing to build inventory again.”

“We lost market share to imports.”

“Our customers sense pricing has bottomed out and are now trying to replenish stock and they want to get ahead of future price increases.”

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. If you would like to participate in our survey, please contact us at info@steelmarketupdate.com.