SMU Data and Models

SMU MoMo Index Winding Down

June 11, 2014

The Steel Market Update Price MoMo Index for flat rolled steel in the U.S was positive this week for the tenth week in a row after being in negative territory for the prior ten 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 0.37 percent this week, meaning that the current HRC price is slightly 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 price trend. The week-over-week change in MoMo was -0.63 percent, the fifth consecutive week-over-week decline. Looking at this change on a 3-week moving average, we see that the trend in HRC price fluctuation is showing a negative direction for HRC prices for the fourth week in a row. The 3-week average change in MoMo is -0.85 percent, up from -1.33 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-$690/ton with an average price of $670/ton, unchanged from last week.

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}