SMU Data and Models
SMU MoMo Index Indicates Price Momentum Flattening Out
Written by Brett Linton
January 15, 2014
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S remained positive this week, but only slightly so, and is currently in its 14th consecutive week of being in positive 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 0.06 percent this week, meaning that the current HRC price is slightly above the average price over 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 -1.62 percent this week, down from 1.18 percent the week before. Looking at this change on a 3-week moving average, we see that the trend in HRC price fluctuation has moved back into negative territory after a slight increase last week. The 3-week average change in MoMo is -0.27 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 Survey: Current Sentiment tumbles on tariffs, uncertainty, soft demand
SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index dropped to one of the lowest levels recorded in over five years, while Future Buyers’ Sentiment inched higher.
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. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU Survey: Buyers report little change in sheet and plate lead times
Steel buyers report steady lead times for sheet and plate products, a soft-sideways trend we've seen since May.
SMU Survey: Mills remain flexible on pricing, buyers say
The majority of steel buyers responding to our market survey this week continue to say that mills are negotiable on new spot order prices. Negotiation rates have remained high since May.
Service centers: Mill orders improve in July
SMU’s Mill Order Index (MOI) moved higher in July after rebounding the month prior. The shift comes after mill orders declined from March through May.