The Steel Industry Optimism Index [abbreviated the 'SIOI'] is a measure on a scale of 0 to 100 of the balance of optimism of recent articles in the international iron and steel industry press.
Articles displayed on the Steelonthenet.com website are scanned for ~100 selected positive and negative keywords. These keywords include terms such as 'profit', 'growth' and 'investment' on the one hand; or 'loss', 'decline' and 'collapse' on the other. A total is recorded each day of the number of recent articles expressing a positive or negative sentiment, as judged by use of the selected keywords. The SIOI measures the overall positive or negative orientation of recent news reports.
An SIOI value of ~50 is neutral [i.e. the number of articles containing positive keywords equals the number of articles with negative keywords]. Index values of 51-100 indicate an overall positive sentiment (with a score of 100 indicating extreme optimism). Values of 0-49 indicate an overall negative sentiment (with zero indicating extreme pessimism).
If the SIOI is on a rising trend, industry news is increasingly bullish or positive and industry optimism is indicated. Where the SIOI is falling over time, the outlook for the steel sector can be interpreted as being increasingly bearish or negative and there is perhaps cause for pessimism or caution. [180 day charts are available for a small charge. Please visit our online store or contact our support team.]