SMU steel buyers sentiment index:little changed
Both Current and Future Sentiment showed a slight decline as a single data point in the latest SMU Steel Buyers Sentiment Index, based on data gathered in mid-September. The index measures how buyers and sellers of flat rolled steel feel about their company's ability to be successful both in the current market environment, as well as three to six months into the future.
Overall, the indexes have remained at optimistic levels throughout 2017, though the small but frequent ups and downs may reflect steel buyers’ fluctuating uncertainty about market conditions. Hurricane Irma and the destruction it brought to the Southeast last week may also have been weighing on respondents’ minds.
Indexed by SMU as a single data point, Current Sentiment is at +66, down 3 points from the data collected two weeks ago. One month ago, sentiment was about the same at +65. Steel buyers are significantly more positive today than they were a year ago when the index was at +49.
SMU's preference is to look at the data based on a three-month moving average (3MMA), which smooths out the index and provides a better look at the true trend. The Current Sentiment 3MMA is at +65.83, little changed from two weeks ago. The downtrend in sentiment appears to be starting to level out after declining steadily since peaking at +74.17 in early April.
As a three-month moving average, Future Sentiment registered +67.33, a slight uptick from two weeks ago and a bump from one month ago when the index was at +66.00. Buyers and sellers are feeling somewhat more optimistic than they were at this time last year when the index was at +62.83. The peak in the Future Sentiment 3MMA in the past year occurred in mid-March at +73.67.
Positive readings will run from +10 to +100 and the arrow will point to the righthand 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 lefthand 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.