SMU Steel Buyers Sentiment Index Remains at +43
Feb / 17 / 2012 - SMU Steel Buyers Sentiment Index Remains at +43
Both Current & Futures Indexes Remain at early February Optimistic Levels
Steel Market Update (SMU) concluded our mid-month steel market survey earlier this afternoon. The SMU Steel Buyers Sentiment Index is +43 matching our Index taken during the 1st week of February. Our survey respondents continue to support an optimistic view of their company’s ability to be successful in both the current market as well as in the future – looking out 3-6 months. The SMU Steel Buyers Sentiment Index has now been in the optimistic range (above zero) for 30 consecutive surveys which go back to early December 2009.
SMU discovered during the survey process many of our respondents were reporting stable to rising demand. We believe the combination of stable flat rolled steel prices (albeit with a modest drift lower lately) and rising demand is creating an optimistic market for all segments of the industry with the potential exception being construction.
The latest reading of +43 is the second highest measurement we have had for our index. The highest reading was made during our mid-January survey when we measured our SMU Steel Buyers Sentiment Index at +49. The lowest measurement was made during the first week of March 2009. We first began measuring Sentiment in November 2008 and our first measurement was a very pessimistic -69.
The SMU Steel Buyers Future Sentiment Index was measured well within the optimistic range at +55 which mirrors our results from earlier this month. SMU Future Sentiment has been in the optimistic range over 30 consecutive surveys which go back to early December 2009. The highest our Future Sentiment has been was +63 recorded in the middle of January 2012 and the lowest reading was measured in mid-January 2009 when we recorded a very pessimistic -40.
About the 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 700 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.
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