SMU MoMo Index Showing Retreat in 36th Week

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 +1.54 percent, following a change of +0.98 last week. Since the MoMo Index is negative, this positive change indicates that the movement in hot rolled prices is decelerating 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 +0.58 percent, following a change of +0.61 percent the week before and a change of +0.28 two weeks ago. This shows that the movement in hot rolled prices is slowing down when 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 $430-$460 per ton with an average price of $445, 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}