SMU Data and Models
SMU MoMo Index Has Spot HRC Above 12 Week Moving Average
Written by Brett Linton
December 19, 2013
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained positive this week for the 10th week in a row after 4 consecutive weeks of being in negative territory. MoMo, a trailing indicator, is based upon the current hot rolled coil (HRC) price weighed against the previous 12-week average spot price as recorded by Steel Market Update. MoMo was measured at 1.32 percent this week, meaning that the current HRC price is above the average price from the previous 12 weeks.
The change in MoMo can be a useful indicator in depicting the severity of price movements. The week-over-week change in MoMo was -1.14 percent this week, down from 0.24 percent the week before. Looking at this change on a 3-week moving average, we see that the trend in HRC price fluctuation has started to turn slightly negative after being relatively flat over the last 7 weeks. The 3-week average change in MoMo is -0.41 percent, meaning that the overall movement in HRC prices over the previous 12 weeks has been very minor.
The graph below demonstrates the relationship between the SMU hot rolled coil price and the three week moving average change in MoMo. Published in our Tuesday evening issue, the SMU HRC price range for this week is $650-$690/ton with an average price of $670/ton.
{amchart id=”70″ SMU Price MoMo Index}
Brett Linton
Read more from Brett LintonLatest in SMU Data and Models
SMU Scrap Survey: Current and Future Sentiment tick down
SMU’s Current Sentiment Index for scrap decreased this month, a move mirrored by our Future Sentiment Index, according to the latest data from our ferrous scrap survey.
SMU Survey: Buyers’ Sentiment slips again, future outlook improves
Each of our Sentiment Indices continues to reflect that steel buyers are positive about their present and future business prospects, though that confidence has eased considerably compared to the beginning of the year.
SMU scrap market survey results now available
SMU’s October ferrous scrap market survey results are now available on our website to all premium members.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
SMU Survey: Sheet and plate lead times stabilize
Sheet and plate lead times saw minor shifts this week, according to SMU’s latest market survey. Sheet times have inched up over the last month but remain within days of multi-year lows, as they have since May. Plate lead times have bobbed within a tight range for months, hovering roughly a week longer than this time last year.