SMU Data and Models

SMU Survey: Current Sentiment Index slides, Future Sentiment steady
Written by Ethan Bernard
December 6, 2024
SMU’s Current Steel Buyers’ Sentiment Index slipped this week, while Future Sentiment was steady at one of the highest readings of the year, according to our most recent survey data.
Every other week, we poll hundreds of steel buyers on their companies’ chances of success in today’s market, as well as their business expectations for the next three to six months. We use this information to calculate our Current Steel Buyers’ Sentiment Index and our Future Steel Buyers’ Sentiment Index, measures tracked since SMU’s inception.
Current Sentiment
SMU’s Current Buyers’ Sentiment Index moved six points lower from our last market check to +40 (Figure 1) this week. The index hasn’t cracked +50 since registering +57 in June.

Future Sentiment
SMU’s Future Steel Buyers’ Sentiment Index stood at +72 this week, unchanged from two weeks earlier (Figure 2). These and another reading of +72 in August are the highest readings of the year.

What SMU survey respondents had to say:
“Bookings remain relatively soft, but positioned well.”
“Lack of business.”
“We buy better than some, maybe most, which helps our bottom line.”
“Lower imports will be a problem for us.”
“We need more building to happen.”
“Will adjust to what prevails in the trade environment.”
“Remain optimistic that demand will improve.”
“Yes, I feel after January things will begin to open up.”
“My hope is that sentiment and actual demand both start rising as 2025 kicks off. Fingers crossed.”
Moving averages
When analyzed on a three-month moving average basis, Current Steel Buyers’ Sentiment fell while Future Sentiment increased this week (Figure 3).
The Current Sentiment 3MMA dropped slightly to +38.82 vs. +39.04 two weeks earlier.
Meanwhile, the Future Sentiment 3MMA increased to +68.40 from +66.44 in the previous market check. This marked the second-highest reading of the year, bested only by the year’s first reading of +69.33 on Jan. 3.

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. A link to our methodology is here. If you would like to participate in our survey, please contact us at info@steelmarketupdate.com.

Ethan Bernard
Read more from Ethan BernardLatest in SMU Data and Models

SMU Survey: Buyers’ Sentiment tumbles as caution increases
SMU’s Buyers’ Sentiment Indices resumed their downward trend this week, erasing the modest recovery seen two weeks ago.

Service centers: Mill orders down further in April
SMU’s Mill Order Index (MOI) declined for a second straight month in April after repeated gains at the start of the year, according to our latest service center inventories data.

SMU Survey: Mill lead times edge lower
Sheet and plate lead times declined across the board this week, according to buyers responding to the latest SMU market survey. While our lead time ranges were unchanged compared to mid-April levels, average production times for each steel product we measure have declined from they were two weeks ago.

SMU Survey: Most buyers say price negotiations back on the table
Domestic mills are largely negotiable on spot prices, according to the majority of steel buyers responding to our latest market survey.

SMU Scrap Survey: Current, Future Sentiment Indices log declines
However, in a month plagued by tariff and economic uncertainty, both current and near-term outlooks for our scrap survey respondents remained surprisingly optimistic.