Market Data
July 7, 2014
SMU MoMo Index Remains in Negative Territory
Written by Brett Linton
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S was negative this week for the third week in a row after being in positive 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 -1.80 percent this week, meaning that the current HRC price is lower 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 -0.06 percent, the eighth 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 seventh week in a row. The 3-week average change in MoMo is -0.72 percent, up from -0.91 last week.
