SMU Data and Models
SMU MoMo Index: Downward Trend is Slowing
Written by Brett Linton
April 8, 2015
This week the Steel Market Update Price MoMo Index for flat rolled steel in the U.S. is showing hot rolled coil price momentum continuing its downward trend for the 33rd week in a row. 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 -8.00 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 for flat rolled steel pricing. The week-over-week change in MoMo was +1.66 percent. This indicates that the movement in hot rolled prices is slowing down in comparison to the previous week.
To get a wider sense of the change in the MoMo Index, we calculate a 3-week average change. The 3-week average change in the MoMo Index is +1.15 percent, following a change of +0.58 percent the week before. This shows that the movement in hot rolled prices is slowing down if viewed over a longer period.
The interactive graph below demonstrates the relationship between the SMU hot rolled coil price, the SMU Price MoMo Index, and the three week moving average change in the MoMo Index. Published in our Tuesday evening issue, the SMU HRC price range for this week is $440-$480 per ton with an average price of $460, unchanged from last week.
SMU Note: You can view the interactive graphic on our Price MoMo Index below when you are logged into the website and reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at info@SteelMarketUpdate.com or 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”138″ SMU HR Price MoMo Index and 3 Week Average Change – Prices Pricing Hot Rolled}
Brett Linton
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