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    November 21, 2014

    HRC Momentum Continues Negative Trend for 13th Week

    Written by Brett Linton

    The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. indicates hot rolled coil price momentum continued its downward trend for the 13th week in a row. MoMo, which is 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 -1.87 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 for flat rolled steel pricing. The week-over-week change in MoMo was +0.38 percent, following a +0.50 percent change the week before. Looking at this change on a 3-week moving average, we see the trend for HRC prices is now positive for the third consecutive week. The 3-week average change in MoMo is +0.71 percent, following an average change of +0.26 last week.

    Brett Linton

    Brett Linton is a digital operations analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

    Read more from Brett Linton

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