Jaway Stainless Steel

SMU steel buyers sentiment index drops 12 points

Steel buyers, in their responses to this week’s Steel Market Update steel market survey, expressed concerns regarding price erosion in hot rolled and other products coupled with signs of weakening demand. Even those involved in segments of the steel industry which have been doing relatively well since the beginning of the year such as automotive were displaying signs of concern about the lack of strength in the overall US economy.

(Atlanta, GA) Steel Market Update Steel Buyers Sentiment Index dropped 12 points since the first of June 2011 and is now registering a +13. The drop indicates steel buyers and sellers continue to be optimistic about their company’s ability to be successful in the current steel market but the level of optimism is waning compared to a where it was earlier this year when demand and prices both were showing positive results.

The +13 is the lowest reading for the SMU Sentiment Index this year. The Sentiment Index peaked the first week of April when it was measured at +40. The lowest reading ever recorded was in early March 2009 when the index was -85. This is the largest single drop in our Sentiment Index going back to this same week in June 2010 when the index declined by 16 points from +7 to -9.

Mr John Packard publisher of Steel Market Update and the founder of the SMU Steel Buyers Sentiment Index said that “Steel buyers, in their responses to this week’s Steel Market Update steel market survey, expressed concerns regarding price erosion in hot rolled and other products coupled with signs of weakening demand. Even those involved in segments of the steel industry which have been doing relatively well since the beginning of the year such as automotive were displaying signs of concern about the lack of strength in the overall US economy.”