Steel Products
SMU MoMo positive for the 10th week
Written by Diana Packard
August 9, 2013
Utilizing a trailing average hot rolled coil (HRC) price, the SMU Price MoMo Index for flat rolled steel in the U.S. remained above zero percent this week for the 10th week after 20 consecutive weeks of negative momentum readings.
MoMo is based upon the current hot rolled coil price weighed against the previous 12 week average spot price as recorded by Steel Market Update. MoMo, as we like to call it so as to not confuse it with our SMU Price Momentum Indicator, was measured at 5.27 percent this week. MoMo decreased 0.50 percent over last week’s measurement of 6.77 percent. The graph below demonstrates the relationship between hot rolled coil and the momentum in pricing. Our HRC price range for this week is $620/ton to $670/ton with an average price of $645/ton.
The SMU MoMo meter – still positive– serves as a lagging indicator demonstrating the historical price momentum trend.
Diana Packard
Read more from Diana PackardLatest in Steel Products
US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.
CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.
Rig count increases in the US and in Canada
Oil and gas drilling activity increased this week in the US and Canada for the third consecutive week, according to the latest Baker Hughes rig count data. US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.