Product
August 9, 2013
SMU MoMo positive for the 10th week
Written by Diana Packard
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.
