+12 Point Move Most Since November to December 2010

Those individuals who buy and sell flat rolled steel in North America have become more optimistic about their company’s ability to be successful in the current steel environment. Our Steel Market Update Steel Buyers Sentiment Index rose +12 points since the beginning of November to +19. The twelve point move higher is the most optimistic move in our index since late last year when our index jumped +19 points between mid-November and early December 2010.

John Packard, Publisher of Steel Market Update and founder of the SMU Steel Buyers Sentiment Index noted, “Those actively involved in the steel industry in North America appear to be reacting to a firm bottom being put to the flat rolled steel markets and an expectation prices will rise at a moderate pace from here. I would peg the current market environment as being mildly optimistic as those within the industry continue to worry about European contagion, supply and demand levels as well as pressure on margins.”

The most optimistic measurement achieved since the November 2008 inception of the SMU Steel Buyers Sentiment Index was measured at +40 the first week of April 2011 while the most pessimistic reading recorded was a -85 in early March 2009.

SMU Future Sentiment Index at +39

The SMU Future Sentiment Index, which measures how buyers and sellers of flat rolled steel feel about their company’s ability to be successful three to six months in the future, continues to be firmly entrenched in the optimistic zone and is up +2 points from earlier this month. The new Future Sentiment Index reading is +39.

The high point for the SMU Future Sentiment Index was +54 achieved during March 2011 while the lowest reading recorded was -40 measured in late January 2009.

About our SMU Steel Buyers Sentiment Index

SMU 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 growth 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 over 775 North American companies to participate in our survey. Our normal response rate is approximately 150-200 companies. Of those responding approximately 48% are manufacturing companies, 49% are service centers/distributors and the balance is made up of steel mills, trading companies and toll processors involved in the steel business.

Steel Market Update does canvass those being invited to participate in order to confirm their active participation in the flat rolled steel business. Our list is updated at least once per month and we are adding new companies on a continuous basis.