SMU MoMo Index Continues to Decline This Week

The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. showed hot rolled coil price momentum falling this week for the sixth week in a row after being in positive territory for the previous four 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 -1.81 percent this week, meaning that the current HRC price is lower than the average price over the last 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 -0.69 percent, following a 0.00 percent change the week before. Looking at this change on a 3-week moving average, we see that the trend in HRC price fluctuation is showing a negative direction for prices for the sixth consecutive week. The 3-week average change in MoMo is -0.23 percent, unchanged from -0.23 last week.