Market Data
July 16, 2014
SMU MoMo Index Showing Current Hot Rolled Prices Slight Lower than 12-Week Average
Written by Brett Linton
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S remained negative this week for the fifth week in a row after being in positive territory for the prior ten weeks. MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current hot rolled coil (HRC) price movements against the previous 12-week average spot price as recorded by Steel Market Update. MoMo was measured at -0.12 percent this week, meaning that the current HRC price is slightly lower than the average price over the previous 12 weeks.
The change in MoMo can be a useful indicator in depicting the severity of price movements and evaluating the directional trend prices may be in. The week-over-week change in MoMo was +1.55 percent, the second consecutive week-over-week increase. Looking at this change on a 3-week moving average, we see that the trend in HRC price fluctuation is now showing a positive direction for HRC prices after being negative for the past eight weeks. The 3-week average change in MoMo is +0.54 percent, up from -0.29 last week.
