SMU Data and Models
SMU MoMo Index Declines Due to Lower Prices
Written by Brett Linton
January 30, 2014
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S turned negative this week after being in positive territory for 15 consecutive weeks. MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current hot rolled coil (HRC) price movements against the previous 12-week average spot price as recorded by Steel Market Update. MoMo was measured at -0.87 percent this week, meaning that the current HRC price is slightly lower the average price over the previous 12 weeks.
The change in MoMo can be a useful indicator in depicting the severity of price movements and evaluating the directional trend prices may be in. The week-over-week change in MoMo was -1.55 percent this week, down from 0.62 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 show an overall negative direction for HRC prices. The 3-week average change in MoMo is -0.85 percent, down from 0.06 last week.
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 $640-$690/ton with an average price of $665/ton.
Below is one of our interactive graphs which provides the current and past history of the SMU MoMo index. You can view the graphic 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 a new user name and password we can do that for you out of our office. Contact us at: info@SteelMarketUpdate.com. If you need help navigating the website we would also be very happy to assist you. Give us a call at: 800-432-3475.
{amchart id=”70″ SMU Price MoMo Index}
Brett Linton
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