Steel Market Update Steel Buyers Sentiment Index was measured at +16 down 7 points from the +23 registered during the middle of November survey and back to the exact same level measured at the beginning of November.
Any reading above zero is considered to be in the "optimistic" range while readings below zero (negative factors) represent pessimistic attitudes by those within the flat rolled steel industry regarding their company's ability to be successful in today's current economic environment. Sentiment is now at the lower end of the range for the year having sunk from calendar year highs of +49 achieved during the middle of January and is within 7 points of the low of +9 reached during the middle of October. Compared to the first week of December one year ago Sentiment is 5 points lower this year than last.
Those responding to our survey made reference to seasonal slowdowns, adjustments in business levels changing early and business conditions being perhaps a bit disappointing to what were expected. Survey respondents also pointed to the political uncertainty regarding the "fiscal cliff" negotiations in Washington, DC as affecting their business and sentiment. Here are some of the comments left during the survey process:
"Have seasonal slowdown and people concerned about steel pricing, futures and fiscal cliff!"
"I think consumer confidence has improved, although with all the negative publicity about the Fiscal Cliff and our government's unwillingness to collaborate for the betterment of all, has people very concerned. It's amazing the power the media has on all of us."
"The HVAC market continues to be a roller coaster ride. We get a some-what decent month followed by a month or two of poor sales."
"December slowdown starting early."
"November was very disappointing."
Source - www.steelmarketupdate.com
(www.steelguru.com)
