Steel Market Update Buyers Sentiment Improves Again
Steel Market Update Buyers Sentiment Continues to Improve
Higher prices equal happier steel buyers and sellers
Over the past month, SMU Buyers Sentiment Index has risen by 32 points and stands at our highest reading of +34. Going back to November 1st 2010 when the price increases started, our index has improved a total of 56 points. The SMU Buyers Sentiment continues to stay in “Optimistic” territory as we start off 2011.
SMU's opinion is that our SMU Buyers Sentiment Index tends to lead pricing. We will watch the relationship between our hot rolled price index (shown below) and the SMU Buyers Sentiment Index to see if the cat is wagging the tail of the dog or vice versa.
SMU Future Sentiment at Highest Level Recorded
SMU Future Sentiment posted the highest level recorded since we began tracking both current and Future Sentiment on November 3, 2008. Our most recent survey of steel buyers and sellers recorded a +53 for SMU Future Sentiment which measures how active buyers and sellers feel about their company’s prospects for success three to six months out into the future.
SMU Future Sentiment has improved by 17 points over the past month and stands at our highest reading of +53. Going back to November 1st 2010 when the price increases started, our index has improved a total of 42 points.
About the SMU 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.
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 actually display the index reading on a meter on the Home Page of our website for all to enjoy.
Currently we send invitations to over 800 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.
You can find our historical data on both the SMU Buyers Sentiment Index and SMU Futures Sentiment index on our website in the research section of the site.To access this part of our website, SIGN UP for your Free Trial. Or, become a member.