Market Data
SMU MoMo Index in Positive Territory
Written by Brett Linton
April 9, 2014
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S turned positive this week after being in negative territory for the prior 10 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 1.55 percent this week, meaning that the current HRC price is higher than 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 +1.74 percent, slightly lower than the +2.76 change last week but still on a positive trend. Looking at this change on a 3-week moving average, we see that the trend in HRC price fluctuation has been showing a positive direction for HRC prices over the past 3 weeks. The 3-week average change in MoMo is 2.18 percent, up from 1.80 last week.
The interactive 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-$660/ton with an average price of $655/ton.
SMU Note: You can view the interactive graphic below 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 or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”70″ SMU Price MoMo Index}
Brett Linton
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