Jaway Stainless Steel

SMU Steel Buyers Sentiment Index up by 3 points

Steel Market Update announced that their SMU Steel Buyers Sentiment Index gained 3 points and now registers +16 keeping the index in the optimistic zone where it has resided since breaking out of pessimistic territory on December 1st 2010. The SMU Steel Buyers Sentiment Index peaked in early April at +40 and had been drifting lower until now.

Mr John Packard publisher of Steel Market Update in statement said that “Steel prices have been falling since early April but the amount of the price drops have moderated in recent weeks which we believe is impacting our SMU Steel Buyers Sentiment Index results.”

Comments made during the survey process found steel buyers attempting to explain their responses. One manufacturing company associated with the construction industry explained that “Some projects that were postponed in 2009 and 2010 for lack of funding have looked to become active again more private funding available for construction projects on the multifamily side.”

At +16 Steel Market Update considers our Index to be mildly optimistic and the tone of that optimism along with reservations regarding future steel price direction was expressed by one steel service center when they told us during the survey process, Some marginal improvement over May, nervous customers, not too many clear signals from the mills on price direction.

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.