SMU Data and Models

SMU MoMo Index Remains in Positive Territory

Written by Brett Linton

The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained positive for the second consecutive week after being in negative territory for the prior six 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 0.93 percent this week, meaning that the current HRC price is slightly higher than the average price for the last 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 +0.13 percent, the fifth consecutive week-over-week increase. Looking at this change on a 3-week moving average, we see that the trend in HRC price fluctuation is showing an overall positive direction for HRC prices for the fourth week in a row after being negative for the previous eight weeks. The 3-week average change in MoMo is +0.35 percent, down from +0.83 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 $660-$690/ton with an average price of $675/ton, unchanged over 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 your username and password, contact us at: 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

Read more from Brett Linton

Latest in SMU Data and Models