SMU Data and Models
SMU Price MoMo Index Down for 24th Week in a Row
Written by Brett Linton
February 4, 2015
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 24th week in a row. 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 -8.86 percent this week, meaning that the current HRC price is lower than the average price over the last 12 weeks.
At -8.86 percent, the pace of the negative price movement for hot rolled steel has accelerated as compared to previous 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 +1.20 percent, following a -2.12 percent change the week before. This indicates that hot rolled prices are declining at a slower rate than they were in the previous week.
Looking at this change on a 3-week moving average, we see the trend for HRC prices is negative for the tenth consecutive week. The 3-week average change in MoMo is -0.56 percent, following a change of -1.74 the week before.
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 $520-$560 per ton with an average price of $540, unchanged from one week ago.
SMU Note: You can view the interactive graphic on our Price MoMo Index 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 info@SteelMarketUpdate.com or 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”138″ SMU HR Price MoMo Index and 3 Week Average Change – Prices Pricing Hot Rolled}
Brett Linton
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