SMU MoMo Index Floating in Negative Territory

The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained negative this week for the fourth week in a row after being in positive territory for the previous four 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 -1.12 percent this week, meaning that the current HRC price is lower than the average price over 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 0.00 percent, following a -0.69 percent change the week before. 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 prices for the fourth consecutive week. The 3-week average change in MoMo is -0.21 percent, up from -0.69 last week.