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    Data Tools

    Steel Demand Index

    Derived from the market surveys SMU conducts every other week, the Steel Demand Index is a diffusion index and a statistical tool to measure the breadth of change across our overall demand data series. It effectively helps identify widespread demand trends or turning points.

    An index score above 50 indicates components are increasing more than decreasing, showing expansion or widespread positive momentum in demand.

    Similarly, a score below 50 indicates that more components are decreasing, signaling contraction or widespread decline in demand.

    A reading of 50 signifies balance, meaning overall demand activity is stagnant.

    This index has historically preceded lead times, which is notable given that lead times are often seen as a leading indicator of steel price moves.

    • Steel Demand Index
    • Demand Index vs. Lead Times

    Steel Demand Index